AUD/JPY technical analysis: Descending channel in play as markets await Australia’s trade data

• Bearish channel favors gradual declines on the quote.
• Australian trade balance data is in the spotlight.

A three-week-old downward sloping trend channel remains in play on the AUD/JPY pair’s four-hour chart as it trades near 75.45 during early Thursday.

Markets await April month trade balance data from Australia for fresh clues. As per the general consensus, the Aussie trade surplus could increase to 5,100 million from 4,949 million prior.

On the chart, 75.30 and latest lows surrounding 75.00 act as immediate support for the pair ahead of highlighting channel support figure of 74.86.

Given the quote slips under 74.86, July 2016 low near 74.50 can come back on the chart.

Alternatively, the break of channel resistance, near 75.90, can trigger pair’s fresh upside towards May 30 high of 76.30 and then to 76.45 nearby upside numbers.

However, 200-bar moving average (4H 200MA) may question buyers around 76.77 if not then 77.00 could be on their list.

AUD/JPY 4-Hour chart

Trend: Pullback expected