AUD/JPY hit 5-day low on dismal Aussie trade data

The AUD is being offered after Aussie Oct. trade numbers.
The AUD/JPY hit a 5-day low of 84.80.

Omkar Godbole FXStreet Contributor

The sell-off in the AUD/JPY pair appears to have resumed after the data released in Australia showed the trade surplus narrowed in October.

The cross was last seen trading around a five-day low of 84.80 levels. The Aussie trade surplus narrowed to AUD 105 million in October from the September figure of AUD 1604 million. The markets were expecting a trade surplus of AUD 1375 million. Also, exports dropped 3 percent. The dismal trade numbers come a day after the GDP reading showed the consumers shut their wallets in three months to September.

Lower highs pattern intact

Tuesday's failure to take out 200-day MA hurdle followed by a sharp drop to sub-85.00 levels left another lower high on the daily chart. The pattern indicates the corrective rally from the Nov. 27 low of 84.35 may have ended.

The rejection at 85.04 (61.8% Fib R of Jun. 6 low - Sep. 21 high) and a drop to 84.80 levels today only validates the bearish price action seen earlier this week.

AUD/JPY Technical Levels

A break below 84.64 (Nov. 17 low) would open up downside towards 84.35 (Nov, 27 low) and 84.00 (psychological levels). On the other hand, a move above 85.04 (61.8% Fib R of Jun. 6 low - Sep. 21 high) would expose 85.23 (5-day MA) and 85.47 (Nov. 16 low).

Author

Omkar Godbole

FXStreet Contributor

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

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