AUDJPY bounced off support at the 75.00 major psychological mark and is headed for the top of its range around 76.00. Technical indicators are giving mixed signals on whether the resistance might hold or not.

The 100 SMA is still above the 200 SMA to indicate that the path of least resistance is to the upside or that the ceiling is more likely to break than to hold. If that happens, AUDJPY could be in for a climb that’s at least the same height as the range or 100 pips.

However, the gap between the indicators is narrowing to reflect weakening bullish momentum. Price is still above both moving averages, so these could hold as dynamic support on quick pullbacks.

Stochastic is heading up to reflect the presence of bullish pressure, but the oscillator is closing in on the overbought territory to indicate exhaustion among buyers. Heading lower could show that sellers are taking over. Similarly RSI is also close to the overbought zone to suggest that buyers might need to take a break and let sellers take control.

If the range resistance holds, another selloff to the bottom could follow.

Risk appetite has favored the higher-yielding Australian dollar in the past trading sessions, even though the RBA statement hinted that a rate cut might be in order. Traders appear optimistic that another set of stimulus efforts are in the works from central banks and governments in order to combat the economic repercussions of the pandemic.

On the flip side, the lower-yielding yen is giving up ground while traders seek riskier holdings. There are no major reports from both economies for the rest of the week, so the range could keep holding unless there are major catalysts that spur a surge in risk-taking.