AUD/JPY runs into the 100-hour moving average after sellers pushed price lower following test of key resistance levels this week
The pair is continuing to back away from the confluence of resistance levels via the key daily moving averages and the 38.2 retracement level above the 74.00 level.
The 100-day MA (red line) and 200-day MA (blue line) helped to limit the upside move this week as price failed to keep above both those levels and the 38.2 retracement level @ 74.08 before tracking lower in trading today.
The move also comes as we are seeing some tepid tones in the market, with European equities keeping mildly lower while bonds yields are also softer to start the session.
In turn, this is driving price back towards a test of key near-term levels:
Notably, price is now testing the 100-hour MA (red line) @ 73.61 as well as the 38.2 retracement level of the recent swing move higher @ 73.64. A break below that and the 200-hour MA (blue line) @ 73.44 will see the near-term bias favour sellers once again.
Ahead of the weekend, just take note of profit-taking activity in stocks in light of the rally this week. That may yet trigger more risk aversion and push the pair lower. In view of that, keep an eye on the near-term support levels above for a sense of direction.
A break below those levels will open up a test towards minor support around 73.35-40 before potentially revisiting last week's lows around 72.42-50.
