AUD/JPY Technical Analysis: Rising wedge can challenge recent recovery, 79.65, 79.85 seem nearby resistances

AUD/JPY is taking the bids around 79.50 during the early Asian session on Tuesday. The pair recently bounced off 79.35 but is still inside the fortnight-long “rising edge” bearish technical formation.

Not only a gradual increase of the 14-bar relative strength index (RSI) towards overbought region but recent high near 79.65, followed by the pattern resistance-line of 79.85 can also challenge the buyers.

Should prices rally beyond 79.85, 80.00 round-figure can quickly appear on the chart whereas 200-day simple moving average on the daily chart may question bulls’ strength afterward.

On the downside, 79.35 can act as immediate support ahead of the crucial lower-line figure of 79.00, a break of which confirms the bearish signal towards 77.70.

However, 50% Fibonacci retracement of its March 25 to April 05 up-move, at 78.60, followed by 78.00, could provide intermediate halts during the quote’s south-run to 77.70 after it slips beneath 79.00.

AUD/JPY hourly chart

Trend: Mildly positive