AUD/JPY Continues Its Downward Move, a Decline to Level 71.16 or 74.79 Is Likely

AUD/JPY Continues Its Downward Move, a Decline to Level 71.16 or 74.79 Is Likely

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 has been in a downward move. This is immediately after the rejection at level 76.50. A retraced candle body tested the 61.8% Fibonacci retracement level. This implies that the Yen will further decline to level 1.618 Fibonacci extension. That is level 71.16.

AUD/JPY – Daily Chart

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend. The pair has fallen to level 43 of the Relative Strength Index period 14. This indicates that it 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 downtrend. A retraced candle body tested the 61.8% Fibonacci retracement level. This implies that the Yen will further decline to level 1.618 Fibonacci extension. That is level 74.79.

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 that the pair is in a bearish momentum. The market has fallen into the oversold region. The SMAs are sloping downward ward indicating the downtrend.

General Outlook for AUD/JPY
The AUD/JPY pair has been on a downward move since October 11. There is a likelihood of further downward move. According to the Fibonacci tool, the pair will reach level 71.16 on the daily chart. On the 4 –hour chart, the pair will fall to level 74.79.


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Author : Azeez Mustapha

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