AUD/JPY has been trading in a narrow ascending channel of about 70 pips wide for last 4 trading days, starting past Monday when reached a fresh 3-month low at 79.37, around a clear bid line that is holding the cross from the downside since mid June. According to Sean Lee, founder at FXWW, AUD/JPY market is “eyeing critical support near 79.30 (see chart) and a break below there could lead to an avalanche of selling,” the analyst notes. The cross is pretty much flat for the week, last at 80.19.
Immediate resistance to the upside for AUD/JPY comes at yesterday's highs 80.40, followed by Sept 11/13 lows at 80.66, and Oct 05 highs/34 day SMA at 80.95. For the downside, nearest term support is seen at recent session lows 79.70, followed by Monday's lows 79.40, and June 25 lows at 79.27 ahead of 50% retrace of daily up leg 74.47/83.59 at 79.04.