AUD/JPY Price Analysis: Hovers around yearly peak below 85.00, RSI probes bulls

• AUD/JPY recently marked a 60-pip move on swift change in market sentiment due to headlines from Ukraine.
• Six-week-old rising channel joins nearly overbought RSI line to test buyers.
• Pullback moves need validation from 83.90 before aiming for channel support, 200-SMA confluence.

AUD/JPY picks up bids reverses the latest downside as the market’s mood changes during early Friday. The risk-barometer pair initially dropped to 84.16 before recently rising to 84.65, staying around the yearly top marked the previous day.

In doing so, the quote seesaws near the upper line of a six-week-old rising channel and hints at a pullback should the fundamentals support. Also favoring the odds of a retreat is the nearly overbought conditions of RSI.

However, a confluence of the 20-SMA and an ascending support line from February 24, near 83.90, restricts the immediate downside of the quote.

Should the AUD/JPY prices drop below 83.90, odds of its slump towards the key 82.45-40 support, comprising 200-SMA and lower line of the stated channel, can’t be ruled out.

Alternatively, upside moves need to cross the channel’s resistance line, near the 85.00 threshold.

Following that, the 86.00 round figure may act as a buffer before directing AUD/JPY bulls to October 2021 peak near 86.25.

AUD/JPY: Four-hour chart

Trend: Bullish