On Thursday, the AUD/JPY is expected to extend its previous day’s gains.
If price decisively breaks 83.35, the pair might see further more rises.
The momentum oscillators are still oversold, so any aggressive bets should be avoided.
In the Asian session on Thursday morning, the Australian dollar rose against the Japanese yen. In the prior day, the pair partially recovered its two-day losses.
AUD/JPY is currently trading at 83.33, up 0.03 percent for the day.
Since June 16, the AUD/NZD currency pair has been under selling pressure below the 20-day Simple Moving Average (SMA) of 84.64 on the daily chart.
If price holds above the session’s high of 83.34, a move toward the high of the 83.50 horizontal resistance level is not out of the question.
As a result, the couple has plenty of room to test the prior higher levels. The June 29 high of 83.73 would be first, followed by 84.00, a critical psychological level.
The Moving Average Convergence Divergence (MACD) indicator, on the other hand, trades with a neutral posture in the oversold zone. Any decrease in the MACD could prompt sellers to re-enter the market.
Bears in the AUD/JPY will aim for the horizontal support levels of 83.00 and 82.70.
The next region of support is at the 82.10 area, which was the low on June 21./n
