AUD/JPY Price Analysis: Poised for further gains above 79.00

• AUD/JPY holds onto previous day’s gains, the biggest jump in six weeks.
• RSI U-turn from oversold conditions backs the bounce off the key Fibonacci retracement support.
• 200-DMA becomes crucial resistance, bears may aim for November 2020 tops on breaking nearby support.

AUD/JPY remains mildly bids around 79.15, after printing the biggest daily gains since early July, amid Tuesday’s Asian session.

In doing so, the cross-currency pair keeps the previous day’s bounce off the 61.8% Fibonacci Retracement (Fibo.) level of October 2020 to May 2021 upside.

With the RSI line gradually recovering from the oversold area, the latest upside is likely heading towards 50% Fibo. level near 79.50.

However, July’s low near 79.85 and the 80.00 threshold, followed by a seven-week-old resistance line around 80.70, will challenge the AUD/JPY buyers during the further advances.

Alternatively, failures to stay beyond the 79.00 round figure could pull the quote back to the 61.8% Fibonacci retracement level of 78.00.

Should the AUD/JPY sellers keep reins below 78.00, tops marked during November 2020 and October 2020, respectively around 77.00 and 76.50, will be on their radars.

AUD/JPY: Daily chart

Trend: Further recovery expected