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Technical Analysis – AUD/JPY

AUD/JPY 26/03/2018 | EconAlerts

AUD/JPY looking bearish in the short-term despite move off 1½-year low.

AUD/JPY has shed 7.5% year-to-date and is currently trading around 80 pips above the near one-and-a-half-year low of 80.49 hit last Friday.

Despite today’s rebound, the negatively aligned Tenkan- and Kijun-sen lines continue to project a bearish short-term picture for the pair. It is of note that the Chikou Span might be hinting to a somewhat oversold market, rendering today’s recovery “justifiable”.

The pair might be meeting resistance around 81.48 – a previous bottom – at the moment, with an upside break shifting the focus to the area around the current level of the Tenkan-sen at 82.12 as an additional barrier to the upside. The range around the Tenkan-sen also includes the 82 round figure that may hold psychological significance.

Should the pair resume its declines, support could come near the one-and-a-half-year low of 80.49. Steeper losses would next turn the attention to the 80 handle that may also be of psychological importance.

The medium-term picture is clearly negative: trading is taking place well below the Ichimoku cloud as well as below the 50- and 100-day moving average lines, with both lines maintaining a negative slope. In addition, a bearish cross was recorded in early March when the 50-day MA moved below the 100-day one.

Overall, both the short- and medium-term outlooks are looking bearish at the moment.

AUD/JPY 26/03/2018 | EconAlerts



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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

source: XM

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