AUD/JPY - Bearish outside day, top in place?

Downside exposed after bearish outside day candle.
Upbeat Japanese data favors break below key Fib level.

Omkar Godbole FXStreet Contributor

Having faced rejection at 89.00 levels for the fifth straight day, the AUD/JPY pair fell sharply to a low of 87.91 yesterday before closing at 88.21.

Yesterday's bearish outside day candle (yesterday's high and low engulfed the previous four daily candle's high and low) suggests the short-term top could be in place above 89.00 levels. That said, the pair is still holding above 87.91 (previous day's low) and 87.97 (23.6% Fib R of Nov low - Jan high).

However, the Fibonacci support could be breached soon, courtesy of upbeat Japanese data released today. The flash manufacturing PMI showed the output neared 4-year high in December and the Ministry of Finance reported a 9.3 percent year-on-year rise in Japanese exports in December.

The data sets show Japanese economy is firing on all cylinders and hence puts a question mark on the need to keep monetary policy accommodative. Thus, the Yen may find fresh bids and push AUD/JPY below 87.97 (23.6% Fib R of Nov low - Jan high).

AUD/JPY Technical Levels

Currently, the pair is trading at 88.17 levels. A break below 87.91 (previous day's low) could yield 87.63 (Jan. 2 low) and 87.32 (100-day MA). On the other hand, a move above 88.30 (10-day MA) would expose resistance at 88.61 (1-hour 100-MA) and 89.00 (psychological levels).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	High
1H	Bullish	Neutral	Low
4H	Strongly Bearish	Neutral	High
1D	Bearish	Neutral	Expanding
1W	Bullish	Neutral	Expanding
Updated Jan 24, 01:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.