AUD/JPY added to Monday's gains on Tuesday and is currently trying to retest the 7-month high of 83.66 hit early last week. A break above that level may take the pair to 85.3 before marching towards 88.035, the 1-1/2-year high it hit late April.

With the upchannel getting lower tops and RSI showing overbought scenario, AUD/JPY may see a short-term correction but will have strong support in the 81.8-79.8 area as suggested by Fibonacci retracements where all the 50-day, 100-day and 200-day SMAs also nearly converge.

Below that, 78.0 can be a stop for AUD/JPY before heading further south to another strong short-term support near 75.7.

AUD/JPY

AUD/JPY added to Monday's gains and is currently trying to retest the 7-month high of 83.66 hit early last week. A break above that level may take the pair to 85.3 before marching towards 88.035, the 1-1/2-year high it hit late April. © Copyright 2010 International Business Times. All Rights Reserved.