- AUD/JPY edges higher on Friday following the previous session’s downside momentum.
- Additional gains visible for pair, if price decisively breaks 81.05.
- Momentum oscillator holds onto the oversold zone with a positive stance.
AUD/JPY edges higher with substantial gains in the Asian session. The pair opened higher and looks to move beyond 81.05.
At the time of writing, AUD/JPY is trading at 81.05, up 0.12% for the day.
AUD/JPY daily chart
On the daily chart, the AUD/JPY pair has taken the support near the double bottom formation around 80.15. After breaking the 20-day Simple Moving Average (SMA) below 84.25 on June 16, the pair has been under continuous selling pressure.
If price sustained above the intraday high at 81.15, it could move back to the previous session’s high of 81.46.
The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any uptick in the MACD could amplify the upside momentum.
In doing so, the buyers would test the 81.80 horizontal resistance level followed by the July 15 at 82.33.
Alternatively, if price starts moving lower, it would continue with the prevailing trend with the first downside target at the 80.75 horizontal support level
The price action suggests further downside for the pair.
Next, AUD/JPY bears would target the low of August 4 at 80.52.
A daily close below the mentioned level would open the gates for the 80.20 horizontal support level.
AUD/JPY additional levels