AUD/JPY Is Fluctuating Above Level 74.00, a Further Decline 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 71.25.

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 37 of the Relative Strength Index period 14. This indicates that it is in the downtrend zone and below the centerline 50. Besides, it is approaching the oversold region of the market.

AUD/JPY Medium-term Trend: Bearish
On the 4-hour chart, the pair is in a downtrend. On the October 15 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. This implies that the Yen will further decline to level 1.272 Fibonacci extension. That is level 73.57. At this level, the market is expected to reverse.

4-hour Chart Indicators Reading
The AUD/JPY pair is currently below the 30% 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. Since the last bearish impulse, the market has been on a range-bound move above level 74.00.. According to the Fibonacci tool, the market will further decline.



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