AUD/JPY Price Analysis: Bulls struggle to defend 96.00 inside weekly rising channel

• AUD/JPY pauses seven-day uptrend around the highest levels since 2015.
• Overbought RSI, nearness to the bullish channel’s resistance challenge further upside.
• Sellers need clear break of 94.70 for entry.

AUD/JPY retreats to 96.00, after refreshing a seven-year high the previous day, as buyers take a breather inside the weekly ascending channel during Wednesday’s Asian session.

Also challenging the cross-currency pair’s further upside is the overbought RSI (14) and nearness of the quote to the stated bullish trend channel.

However, sellers may wait for a downside break of the April 2022 peak, near 95.75, to take fresh entries. Even so, a convergence of the channel’s support line and 21-SMA, around 94.70, appears a tough nut to crack for the AUD/JPY bears.

Should the quote drop below 91.60, the odds of its south-run to the 200-SMA level of 91.60 can’t be ruled out.

Alternatively, the aforementioned channel’s resistance line near 96.40 and the May 2015 peak of 97.30 are likely immediate hurdles for the AUD/JPY bulls to cross before eyeing the 100.00 psychological magnet.

Overall, AUD/JPY remains in a bullish trajectory but may witness a pullback.

AUD/JPY: Four-hour chart

Trend: Pullback expected