The AUDJPY currency pair, currently at 95.1200, has experienced a significant increase of over 50 pips in order to surpass a short-term important resistance level, largely influenced by a positive market sentiment and stronger economic data from Australia. However, the viewpoint from @nehcap suggests that the potential for further gains is limited.

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• AUD/JPY jumps more than 50 pips to cross short-term key resistance line amid risk-on mood, firmer Aussie data.

The pair currently trades last at 95.1200.

The previous day high was 94.84 while the previous day low was 94.21. The daily 38.2% Fib levels comes at 94.45, expected to provide support. Similarly, the daily 61.8% fib level is at 94.6, expected to provide support.

AUD/JPY remains on the front foot around 95.00, after rallying nearly 50 pips on better-than-forecast Australian employment data for June and the People’s Bank of China’s (PBoC) inaction on early Thursday. That said, the cross-currency pair’s latest run-up surpasses a three-week-old descending resistance line and joins the upbeat RSI (14) line to lure the pair buyers amid upbeat Aussie data.

Australia’s headline Employment Change rose by 32.6K versus 15K expected and 75.9K prior whereas the Unemployment Rate eased to 3.5% compared to the market’s forecast of staying unchanged at 3.6%.

On the other hand, the People’s Bank of China (PBoC) kept its benchmark Loan Prime Rates (LPRs) unchanged during today’s Interest Rate Decision. That said, the one-year and five-year LPRs are held intact at 3.55% and 4.20% respectively at the latest. The Chinese central bank, however, eased restrictions on cross-border funding by lifting the adjustment parameter for firms to 1.5 from 1.25.

Technically, the AUD/JPY pair’s upside break of the aforementioned resistance line allows it to prod the convergence of the 100-SMA and 200-SMA, around 95.15-20. However, the quote’s further upside appears difficult as the falling trend line on the RSI (14) doesn’t comply with the latest trend line breakout on the prices.

In a case where the AUD/JPY pair rises past 95.20, the mid-month high of around 95.40 and the monthly peak surrounding 96.85 can lure buyers.

On the contrary, pullback remains elusive unless the quote stays beyond the resistance-turned-support line of around 94.70.

Following that, an upward-sloping support line from early June and the 50% Fibonacci retracement of the pair’s June 01-16 upside, near the 94.00 round figure, will be crucial to break for the AUD/JPY bears before retaking control.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

AUDJPY currently trading at 95.08 at the time of writing. Pair opened at 94.55 and is trading with a change of 0.56% % .

The pair is trading below its 20 Daily moving average @ 95.4, above its 50 Daily moving average @ 93.9 , above its 100 Daily moving average @ 91.68 and above its 200 Daily moving average @ 91.89

The previous day high was 94.84 while the previous day low was 94.21. The daily 38.2% Fib levels comes at 94.45, expected to provide support. Similarly, the daily 61.8% fib level is at 94.6, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 94.23, 93.9, 93.6
• Pivot resistance is noted at 94.86, 95.16, 95.48

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