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Technical Analysis – AUD/JPY approaches 2-year low

AUD/JPY 08/10/18 | EconAlerts


AUD/JPY in sharp sell-off in short-term; approaches 2-year low.

AUD/JPY has come under sharp selling pressure following the pullback on the 82.50 resistance level in the preceding week. Moreover, despite that, the 20- and 40-simple moving averages (SMA) posted a bullish crossover, the price slipped below them and continues the negative movement. Looking at daily oscillators though, there are signs that the latest pullback may continue for a while longer. The RSI turned downwards after it hit resistance near its 70 line, while the MACD is moving below the trigger line.

A further aggressive sell-off could drive the price until the 78.70 support level, reached on September 7, and if this level is breached, it may set the stage for more declines. A clear break below this level could challenge the 76.72 level, taken from the low on November 2016.

On the flip side, a possible jump above the SMA could meet the area near the 23.6% Fibonacci retracement level of the down-leg from 90.30 to 78.70, around 81.42. A move higher from this level could send prices until the 82.50 level before being able to hit the 38.2% Fibonacci of 83.12.

Regarding the medium-term picture, the bearish sentiment deteriorated after the downfall from the 90.30 resistance level and fell towards the almost two-year low of 78.70.

AUD/JPY 08/10/18 | 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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