AUDJPY to Remain Under Pressure

Key Highlights

• Australian Dollar remains in a downtrend, and might continue to weaken against the Japanese Yen in the short term.

• There are many hurdles for buyers around 91.20-40, stalling the upside in the AUDJPY pair.

• Australian Foreign Exchange Transaction released by the Reserve Bank of Australia came in at 674M, which was lower compared with the last 2,922M.

• Japanese Securities investment, released by Ministry of Finance came in at ¥600.3B, more than the last reading ¥110.8B.

AUDJPY Technical Analysis

The AUDJPY pair is under bearish pressure, as there are a couple of bearish trend lines formed on the hourly chart. The highlighted trend lines are acting as a barrier for buyers, and might push the pair further lower in the near term. The most interesting thing is that the pair is below the 100 and 200 hourly simple moving averages, which is a negative sign. The hourly RSI is struggling to clear the 50 levels, suggesting the amount of bearish pressure on the AUDJPY pair.

Moreover, the 50% Fib retracement level of the last leg from the 91.88 high to 90.73 low is also on the upside to act as a resistance. As long as the pair is below the highlighted trend line and resistance zone, more losses are possible.

On the downside, an initial support can be seen around 90.50, followed by the last swing low of 90.73. A break below it might call for a new low moving ahead.