AUD/JPY Price Analysis: 74.42 is the level to beat for the bulls

• AUD/JPY's immediate bullish outlook has been neutralized by Tuesday's Doji candle. 
• The pair needs to move above Tuesday's high of 74.42 to restore the bullish bias. 

AUD/JPY created a Doji candle on Tuesday – a sign of indecision in the marketplace – neutralizing the immediate positive bias put forward by Monday’s bullish marubozu candle and Tuesday’s descending triangle breakout. 

The pair, therefore, needs to cross the high of Tuesday’s Doji candle at 74.42. That would restore the immediate bullish view and open the doors for a rally toward the recent high of 76.79. 

On the other hand, a move below the low of Doji candle at 73.20 would expose the 200-day simple moving average (SMA) support, currently located at 72.24. 

At press time, the 14-day relative strength index is reporting bullish conditions with an above-50 print. As such, one may expect the pair to chart a bullish breakout above 74.42. However, it will likely be an uphill task for the bulls, as the trendline rising from March 19 and May 18 lows is located at 74.30 and could offer stiff resistance. 

Daily chart

Trend: Neutral

Technical levels