• AUD/JPY snaps two-day uptrend, prints mild losses around monthly top.
• Overbought RSI conditions, 50% mean reversion challenge buyers.
• 200-SMA, ascending trend channel keeps bulls hopeful.

AUD/JPY struggles to extend two-day advances, easing to 82.30 during early Friday morning in Europe.

The cross-currency pair refreshed the monthly peak before easing from 82.47. In doing so, the quote steps back from 50% Fibonacci retracement level (also known as mean reversion) of November-December downside amid overbought RSI conditions.

Even so, the AUD/JPY prices remain above 200-SMA and inside a three-week-old ascending trend channel bullish chart formation.

Hence, the pair’s latest pullback remains elusive beyond the stated SMA level of 81.85, a break of which should recall the 81.00 threshold to the chart. However, the support line of the immediate channel, around 80.65, will test the AUD/JPY bears afterward.

Meanwhile, a clear run-up beyond the nearby hurdle of 82.45 will aim for the aforementioned channel’s upper line, around 83.00 by the press time.

If at all AUD/JPY buyers refrain from stepping back around 83.00, the 61.8% Fibonacci retracement level of 83.30 will be important to watch.

AUD/JPY: Four-hour chart

Trend: Further recovery expected