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AUDJPY entered consolidation after a bearish pullback at the cloud top. It found support at 74.95.
Above the 75.20 zone, price action suggests an upside move. The said level is a confluence of the 61.8% and 38.2% Fibonacci retracements. The short and long-term upside legs of 72.52-76.87 and 74.23-76.87 moves.
In addition, the full body of the 4h candlestick trades within the Ichimoku cloud while the Tenkan rejected bears. Should prices remain within the cloud, a breakout towards the 50% Fibonacci at 75.55 can be expected.
A strong bullish move will bring the 75.86 into play next. This is where the Kijun meets the short-term 38.2% and long-term 23.6% Fibonacci retracements. It could indicate a strong resistance before a potential pullback.
Keeping in mind that the RSI (14) has already formed a bullish divergence, an identical signal in the short-term could validate the longer-term trend.
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