AUD/JPY technical analysis: Struggles between 61.8% Fibo, support-turned-resistance

• AUD/JPY fails to justify recent bounce off 61.8% Fibonacci retracement, backed by oversold RSI.
• Support-line of three-week-old falling channel limits immediate upside.

Although oversold conditions of 14-bar relative strength index (RSI) triggered the AUD/JPY pair’s recent pullback, the quote still stays below near-term key resistance (previous support) while trading near 71.88 amid early Thursday morning in Asia.

RSI increases the odds of the pair’s recovery but the lower-line of the aforementioned channel, at 71.95 now, holds the gate for further advances to 50% Fibonacci retracement level of August-September upside to 72.23.

During the pair’s run-up beyond 72.23, 72.50 and 38.2% Fibonacci retracement level of 72.77 might act as intermediate halts ahead of highlighting 73.30/35 region including 100-bar simple moving average (SMA) and channel’s upper-line.

Alternatively, pair’s declines below 61.8% Fibonacci retracement, at 71.70, could visit 71.10/71.00 support-zone comprising multiple lows marked during late-August to early-September.

Further, bears’ additional dominance below 71.00 enables them to aim for 70.80/76 and August month low near 70.00.

AUD/JPY 4-hour chart

Trend: Sideways