Bulls attack weekly hurdle above 93.00 on bullish Australian data
- AUD/JPY rebounds to an intraday high as the bulls approach the week-old resistance line.
- Australian trade figures for June signal a firmer surprise, contrasting with weaker import and export data.
- The slow MACD is testing the bullish momentum, but the sustained breakout of the 100-HMA favors the bulls.
- The 200-HMA acts as additional resistance before highlighting the June high.
AUD/JPY vindicates firmer Aussie trade numbers while resuming offers to refresh the daily high near 93.10 in Thursday’s Asian session. In doing so, the cross currency pair is approaching a weekly resistance line while holding onto the successful breakout of the 100-HMA.
Given the lackluster MACD signals, AUD/JPY prices should remain on the sidelines.
That said, Australia’s trade balance rose to 17,670 million in June, well above the forecast 14,000 million and the previous 15,965 million. However, imports and exports both declined to 0.7% and 5.1% in the reported month from prior values of 5.8% and 9.5% respectively.
It should be noted that the upside breakout of the 93.25 Trendline hurdle quote will need to be validated by the 200-HMA resistance at 93.65 to call back AUD/JPY bulls.
On the contrary, a convergence of the 100-HMA and 38.2% Fibonacci retracement from July 27 to August 02 downwards near 92.50 looks hard to break for AUD/JPY bears.
Subsequently, the 23.6% Fibonacci retracement level near 91.70 may probe the bearish momentum ahead of the weekly low near 90.50.
AUD/JPY: hourly chart
Trend: continuation of the expected rise