- AUD / JPY shows modest gains during Asian session.
- More gains envisaged if the price breaks decisively 84.90.
- Momentum Oscillator signals bullish momentum.
The AUD / JPY price rose slightly on Wednesday at the start of the Asian session. The cross currency pair continues with the higher momentum from the previous two sessions.
As of this writing, AUD / JPY is trading at 84.89, up 0.01% for the day.
AUD / JPY Chart in 4 hours
On the 4-hour chart, the AUD / JPY price consolidated near the 23.6% Fibonacci retracement at 84.97. Price extended the rally from the low of 84.24, the Fibonacci retracement, and is generally between the 84.70-84.90 trading band.
If the price makes a sustained move beyond the session high at 84.91 then it could extend the gain towards the horizontal support level of 85.00 followed by the May 28 high near the 85 area , 20.
The Relative Strength Index (RSI) indicator reads just above 50 which signifies underlying bullish momentum. The next resistance zone could be located at the horizontal resistance level of 85.40.
Alternatively, the downward momentum could be significant if the price slips below the 38.2% Fibonacci retracement at 84.81. In doing so, the AUD / JPY bears would first target the 61.8% Fibonacci retracement at 84.60.
Market participants would further be encouraged to move towards the 84.40 horizontal support level followed by the May 25 low near the 84.25 area.