AUD/JPY Price Analysis: Rebound from 50-day EMA eyes monthly resistance

• AUD/JPY keeps Friday’s break of short-term trend line resistance.
• Steady RSI, sustained bounce off 50-day EMA also favor buyers.
• Bears seek 83.00 break for conviction, bulls have a bumpy road ahead.

AUD/JPY flirts with 83.50 during early Monday morning in Asia. In doing so, the cross-currency pair holds onto the corrective pullback from 50-day EMA, as well as an upside break of a descending trend line from November 01.

As RSI conditions do back the latest recovery moves, the quote is up for challenging a one-month-old horizontal hurdle around 83.80-85.

However, 23.6% Fibonacci retracement (Fibo.) of August-October upside and October 22 low, respectively around 84.30 and 84.60, will challenge any further upside past 83.85.

In a case where the AUD/JPY bulls keep reins past 84.60, the 85.50 and the 86.00 levels may test the run-up towards the previous month’s top of 86.25.

Alternatively, a downside break of the previous resistance and the 50-day EMA convergence around 83.15-10 stops the pair buyers. Though, 38.2% Fibo. level near 83.00 will test the bears before allowing entry.

Should the AUD/JPY bears keep reins past 83.00, 50% Fibonacci retracement level and September’s peak, close to 82.00, will be in focus.

AUD/JPY: Daily chart

Trend: Further upside expected