#AUDJPY @ 96.2600 A test of a VCP pattern displays the strength of the cross. (Pivot Orderbook analysis)

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• A test of a VCP pattern displays the strength of the cross.
• Advancing 50-EMA at 95.00 adds to the upside filters.
• Aussie bulls will drive the asset towards 100.00 after a break above 98.58.

The pair currently trades last at 96.2600.

The previous day high was 97.13 while the previous day low was 96.1. The daily 38.2% Fib levels comes at 96.49, expected to provide resistance. Similarly, the daily 61.8% fib level is at 96.74, expected to provide resistance.

The AUD/JPY pair has attempted a rebound after slipping below the critical support of 96.00 in the Tokyo session. The pair has continued its three-day losing streak after dropping below Wednesday’s low at 95.98. On a broader note, the cross has witnessed an intense sell-off after failing to sustain above the critical hurdle of 98.00.

On a daily scale, a firmer rally after an upside break of the symmetrical triangle has exhausted and a downside move has been observed. A breakout of a volatility contraction pattern has to deliver various tests before joining the bulls’ party. These corrective tests decline where the smart money is allocated by institutional investors.

The asset has already corrected to a 20-period Exponential Moving Average (EMA) at 96.00 but may find reversal action sooner. Also, the 50-EMA at 95.00 is advancing, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI (14) has shifted into the 40.00-60.00 but that doesn’t warrant a bearish reversal.

Should the asset break above Thursday’s high at 97.13, aussie bulls will drive the asset towards Tuesday’s high of 98.58. A breach of the latter will drive the cross to its ultimate target of 100.00.

On the contrary, a decisive drop below August 24 low at 94.20 will drag the asset towards August 15 low at 93.07, followed by July 11 low at 92.31.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 96.11 at the time of writing. Pair opened at 96.2 and is trading with a change of -0.09 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 95.86, 50 SMA 94.68, 100 SMA @ 93.6 and 200 SMA @ 89.66.

The previous day high was 97.13 while the previous day low was 96.1. The daily 38.2% Fib levels comes at 96.49, expected to provide resistance. Similarly, the daily 61.8% fib level is at 96.74, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 95.82, 95.44, 94.79
• Pivot resistance is noted at 96.85, 97.51, 97.88

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