AUD/JPY technical analysis: 78.80, 79.15 can challenge bulls

• A week-long horizontal-line and a descending resistance-line from April 18 can restrict the latest upswing.
• An upward sloping trend-line connecting lows since April 25 seems immediate support at 78.50.

Despite recovering since the middle of the last week, the AUD/JPY pair is still to conquer 78.80 horizontal-line as it trades near 78.60 during early Monday.

Not only 78.80 line connecting highs marked on April 24 and 26, but a downward sloping trend-line from April 18 could also challenge buyers around 79.15.

Should there be increased buying beyond 79.15, 61.8% Fibonacci retracement of its April 17 to 25 downturn at 79.75, followed by 79.90 horizontal-line, could become buyers’ favorites.

On the downside, immediate ascending trend-line at 78.50 and recent lows surrounding 78.40 can limit the quote’s near-term declines.

Given the prices slip beneath 78.40, 78.10 and 61.8% Fibonacci expansion (FE) of moves since April 23, at 78.00, might entertain sellers.

AUD/JPY hourly chart

Trend: Pullback expected