AUDJPY has fallen over 5% in the past three days with the current sell-off taking prices from above the 200-day moving average to sharply below the 50-day moving average. The near-term bias has turned from positive to negative. This is underlined by the downward sloping RSI, which has yet to approach oversold territory, indicating there is scope for further losses.
The nearest support is likely to come from the 23.6% Fibonacci retracement level of the downleg from 90.71 to 77.57. This is also the April 7 low of 80.66. A drop below this level would strengthen the bearish bias and threaten the February 11 low of 77.57.
In the medium-term, prices have been trading within a range since January and a rise back above the 50-day moving average, which also corresponds with the 50% Fibonacci level at around 84.10, would help sustain the neutral outlook.
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