• AUD/JPY retreats from monthly high as buyers jostle with the 61.8% Fibonacci retracement level.
• Overbought RSI (14), weekly resistance line also challenge bulls.
• 200-SMA holds the key for bear’s entry but ascending trend line from mid-May appears important support.

AUD/JPY bulls take a breather around a one-month high, even as data from Australia and China came in better than expected during early Wednesday. That said, the cross-currency pair jostles with a one-week-old resistance around 92.80-75 by the press time.

Australia’s first quarter (Q1) Gross Domestic Product (GDP) rose by 0.8% versus 0.7% expected and 3.4% prior. The annualized GDP also increased 3.3% compared to 3.0% YoY market consensus and 4.2% previous readouts. Further, China’s Caixin Manufacturing PMI rose past 47.0 forecast and 46.0 prior readings to 48.1.

The AUD/JPY pair’s latest struggle could be linked to the overbought RSI conditions, as well as the one-week-old rising trend line, around 92.80.

However, the quote keeps the previous breakouts of the 200-SMA and a downward sloping trend line from late April, which in turn pushes back the sellers.

Hence, AUD/JPY bulls seem running out of fuel but not out of the game yet.

It’s worth noting that late April swing high around 93.50 and May’s peak of 94.03 are extra hurdles for the pair buyers if at all they manage to cross 92.80 immediate resistance.

On the contrary, a convergence of the 200-SMA and 50% Fibonacci retracement of April 20 to May 12 downside, around 91.60, limits short-term declines of the AUD/JPY pair.

Following that, the resistance-turned-support from April 20 and a three-week-old rising trend line, respectively around 91.00 and 90.50, will be in focus.

AUD/JPY: Four-hour chart

Trend: Pullback expected