AUDJPY has formed higher lows and higher highs inside a rising channel that’s been holding since August. Price just bounced off the channel top and could be due for a test of support again.

The Fibonacci retracement tool shows additional levels where buyers might be waiting. Price is testing the 38.2% Fib that lines up with the mid-channel area of interest at 96.35.

A larger pullback could reach the 50% Fib near the 96.00 major psychological mark or the 61.8% Fib at 95.55 near the 200 SMA dynamic support. If any of these hold as support, AUDJPY could resume the climb to the swing high at 97.64 or higher.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break. Still, a move below the channel bottom around 95.00 could signal that a reversal is in the works.

Stochastic has a bit of room to climb before reflecting exhaustion among buyers, so bullish momentum could stay in play for a bit longer. Once the oscillator reaches the overbought zone and turns lower, sellers might take over.

RSI is already on the move down to indicate that there is some bearish pressure present.

AUDJPY might take cues from the set of economic reports to be released by China later in the week. Stronger industrial production and retail sales data could point to higher demand for Australia’s raw materials and commodities, which would be beneficial for the export-driven economy.

On the other hand, downbeat data from China might suggest that purchases of commodities would be constrained and that investors would remain risk averse, likely leading to declines for AUD.

On Thursday, Australia has its jobs report up for release and might set the tone for RBA policy expectations.