AUD/JPY Price Analysis: Hovers near January’s high at 84.30, pullback eyed

• AUD/JPY has remained firmer after surpassing 83.86 amid a risk-off impulse.
• The RSI (14) has crossed above 60.00, which adds to the upside filters.
• Bears may take charge if it skids below the 20-EMA.

The AUD/JPY pair has attracted some significant bids on Wednesday after overstepping Tuesday’s high at 83.86 amid a risk-off impulse in the market. The major has remained in positive territory right from the first trading session of February.

On a four-hour scale, AUD/JPY is trading near January’s high at 84.30. The pair has been on an adrenaline rush after giving a breakout of a symmetrical triangle. Usually, a symmetrical triangle denotes low volumes and small size ticks while formation but its breakout results in volume and volatility expansion. The major is sensing resistance near January’s high at 84.30 and is likely to witness a corrective pullback towards the tip of the symmetrical triangle near 83.82.

The Relative Strength Index (RSI) (14) has shifted above 60.00 after oscillating in a range of 40.00-60.00, which indicates a trigger for a fresh rally.

The 50-period and 200-period Exponential Moving Averages (EMA) are scaling higher, which adds to the upside filters and may act as strong supports going forward.

For an upside, bulls may find significant bids near pullback at 83.82, which will send the major higher towards January’s high at 84.30. Breach of the latter would expose November 03 high at 85.21.

On the flip side, bears can dictate levels if the spot slips below the 20-EMA at 83.59 towards 50-EMA and 200-EMA at 83.25 and 82.67 respectively.

AUD/JPY four-hour chart