AUD/JPY technical analysis: Multiple resistance-lines to limit latest recovery

• Near-term trend-line resistances question recent pullback.
• The limited gap on the downside before meeting the year 2016 and early January lows.

Even if AUD/JPY’s recent short-covering moves from 74.77 presently propels it towards 75.00, near-term descending trend-lines are on the spotlight during early Friday.

Not only a downward sloping resistance-line from late-Tuesday but resistance-line connecting highs since early-week is also likely to challenge the pair’s latest recovery around 75.04 and 75.18 respectively.

Given the prices manage to clear 75.18 resistance, 200-hour moving average (HMA) near 75.46 and current week top near 75.68/70 can please the buyers.

It should also be noted that 74.77 holds the immediate downside confined, a break of which highlights July 2016 low near 74.55 and the year 2016 bottom close to 72.45.

Additionally, pair’s extended south-run below 72.45 can shift market focus to January month flash crash low around 70.90.

AUD/JPY hourly chart

Trend: Bearish