AUDJPY is cautiously positive in the very short-term as the lower high throws into question the improving outlook. The pair is being supported by the 50-day simple moving average (SMA) keeping optimism on the table. Additionally, the nearing bullish crossover of the 200-day SMA by the 100-day one – around 74.50 – and the supportive trendline below, could sustain the ascent from the low of 69.94.
The short-term oscillators suggest that positive momentum may be picking up, despite the recent easing in the price. The MACD remains in the positive region but has slipped under its red trigger line, while the RSI is rising just beneath its neutral mark. The Stochastics look to be reversing with a forthcoming bullish cross by the %K line in the oversold region.
If buyers manage to push over the 75.32 level, which is the 50.0% Fibonacci retracement of the down leg from 80.70 to 69.94, the tops between the 76.00 barrier and the 61.8% Fibo of 76.60 could challenge attempts to stretch for the 77.50 obstacle. If buying interest persists, the 76.4% Fibo of 78.18 may come into play ahead of the 78.93 swing high of April 2019.
To the downside, immediate support rests at the 50-day SMA at 74.93 before the nearing bullish cross around 74.50, bordering with the ascending line drawn from the multi-year low of 69.94. Surpassing this important point, the 38.2% Fibo of 74.05 and fresh swing low of 73.75 may halt further declines towards the 23.6% Fibo of 72.49 and the 71.72 trough.
In brief, the pair maintains its bullish bias and only a break below 73.75 could shift the outlook.
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