AUD/JPY Technical Analysis: Path of least resistance is on the higher side

• The bull flag breakout seen in the AUD/JPY hourly chart indicates a resumption of the rally from the Sept. 17 low of 79.77 and has opened up upside toward 83.00
• The 5-day and 10-day moving averages (MAs) are trending north, indicating a bullish setup.
• The pair has found acceptance above the 200-day MA and also closed last week above the trendline connecting the highs seen in the last week of January and the July high.
• The AUD/JPY could test 83.12 (38.2% Fib R of September 2017 high/September 2018 low) in the next couple of weeks, although a minor pullback cannot be ruled out as the USD/JPY is looking overbought.

Hourly Chart

Spot Rate: 82.24

Daily High: 82.29

Daily Low: 82.11

Trend: Bullish

Resistance

R1: 82.51 (Sept. 26 high)

R2: 83.00 (psychological support)

R3: 83.12 (38.2% Fib R of September 2017 high/September 2018 low)

Support

S1: 82.11 (session low)

S2: 81.82 (10-day MA)

S3: 81.30 (Sept. 27 low support on the hourly chart)