AUD/JPY Technical Analysis: Eyes on three-week-old rising trendline after Japan GDP
|- AUD/JPY declines after Japan’s upbeat GDP/trade data.
- An upward sloping support line since mid-November gains sellers’ attention.
- 200-bar SMA, one-week-old falling trend line restrict immediate upside.
AUD/JPY trades around 74.20, after flashing a low of 74.17, on early Monday. The quote reacted to Japan’s upbeat Gross Domestic Product (GDP) and Trade Balance data.
Japan’s third-quarter (Q3) GDP (QoQ) rose beyond 0.2% expectations and 0.1% preliminary forecast to +0.4% while the yearly figure stood unchanged at 0.6%. Further, Japan’s October month Trade Balance on the Balance of Payments (BOP) basis crossed ¥1.1 B prior with a whooping ¥254 B.
Read: Japanese GDP Q3 beats expectations by 0.2%
The pair now seems to decline towards near-term rising support line, at 74.00. However, 23.6% Fibonacci retracement of November month fall, near 73.90, can stop the further downpour.
Should there be additional weakness past-73.90, the previous month’s low near 73.35 will be on the Bears’ radar.
Meanwhile, 200-bar Simple Moving Average (SMA) and an immediate falling trend line limit the pair’s near-term upside around 74.35/40.
In a case prices rally beyond 74.40, 61.8% Fibonacci retracement close to 74.80 and November 10 high around 75.00 could return to the charts.
AUD/JPY four-hour chart
Trend: Bearish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.