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.
Prices trade within an ascending channel at the moment of writing. With the top regression trendline having failed to be tested again, we can expect bulls to initiate another short-term attempt.
Should prices fall below the 61.8% Fibonacci at 75.24, chances of an upside move will deteriorate. However, another test at the lower regression trendline could see a bounce. This could be followed by a break of the median regression line near the 50% Fibonacci retracement at 75.55.
Breaking the said level could see bulls pushing higher to the current top of the Ichimoku cloud. At that level, prices will also be at the 38.2% Fibonacci retracement at 75.86.
The RSI supports a divergence during the bearish move, however, currently it is supporting the market trend.