AUD/JPY Continues Downtrend, May Reach Initial Target at Level 73.50

AUD/JPY Continues Downtrend, May Reach Initial Target at Level 73.50

Key Resistance Levels: 74.00, 76.00, 78.00
Key Support Levels: 58.00, 60.00, 62.00

AUD/JPY Price Long-term Trend: Bearish
The AUD/JPY pair is currently trading in a downward move. On September 8 downtrend, a green retraced candle body tested the 50% Fibonacci retracement level. It indicates that the pair will fall and reach the 2.0 Fibonacci extension level. That is, it will reach a low of level 73.50. The pair may continue to trend lower.

AUD/JPY – Daily Chart

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend. The pair has fallen to level 27 of the Relative Strength Index period 14. The price is in the oversold region . The market may soon have the emergence of buyers. The price is in the downtrend zone and below the centerline 50.

AUD/JPY Medium-term Trend: Bearish
On the 4-hour chart, the pair is in a bearish trend. The price is falling in a descending channel. If the price breaks the support line, the downtrend will continue.

AUD/JPY – 4 Hour Chart

4-hour Chart Indicators Reading
The AUD/JPY pair is currently below the 20% range of the daily stochastic. It indicates a bearish momentum but the price has reached the oversold region. The implication is that buyers are likely to emerge to push prices up. However, in a trending market, the oversold conditions may not hold.

General Outlook for AUD/JPY
The AUD/JPY pair was earlier in a downtrend. The selling pressure is ongoing. Buyers are yet to emerge. According to the Fibonacci tool, the market will fall and reached a low of 2.0 Fibonacci extension level.

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Author : Azeez Mustapha


Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.