- AUD/JPY extends declines from 75.62 while portraying a bearish chart pattern.
- A three-week-old rising support line adds to the downside barriers.
- Multiple high above 76.50, bearish MACD keep the sellers hopeful.
AUD/JPY drops to 74.60, down 0.47% on a day, during the early Thursday. In doing so, the pair rests near the neckline of a short-term Head-and-Shoulders bearish formation on the 4-hour chart.
Other than the chart pattern, bearish MACD also favors the sellers. However, the bears need a clear break below 74.50 to justify the ability to target theoretically expected fall towards 72.20.
During the pair’s declines between 74.50 and 72.20, an ascending trend line from May 22, at 73.30 now, might offer an intermediate halt. Though, any more downside past-72.20 might not hesitate to visit May 27 top near 71.90.
On the upside, 75.60 and 76.00 might offer nearby resistance to the pair, a break of which could question the bearish chart pattern while aiming a break of 76.80.
It should, however, be noted that multiple highs marked during late-2019 and the early-2020 around 76.50 might question the bulls.
AUD/JPY four-hour chart
Trend: Further downside expected
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD maintains its bullish stance near 1.1350, look at Fedspeak
EUR/USD extends its advance above the 1.1300 level on Wednesday, supported by ongoing weakness in the US Dollar. Persistent trade tensions and renewed concerns over US fiscal health continue to pressure the Greenback, as markets look ahead to comments from central bank officials.
GBP/USD looks well bid past 1.3400, Dollar remains on the defensive
GBP/USD retreats from its earlier multi-year high near 1.3470 but continues to hold a firm bullish tone on Wednesday. The Pound remains supported after UK data showed annual CPI inflation accelerated to 3.5% in April from 2.6% in March, lifting sentiment around the currency.
Gold appears range bound near $3,300 ahead of Fed speakers
Gold regains the area above the $3,300 mark per troy ounce midweek, supported by growing fears of escalating tensions in the Middle East. Adding to the upward pressure, the US Dollar remains under strain amid ongoing concerns over US debt sustainability.
The Fed won’t cut rates soon – bad news for your mortgage loan Premium
The recent surge in US Treasury bond yields after Moody’s cut the credit rating of the United States (US) sovereign debt could be a wake-up call for financial markets, the kind of canary in the coal mine that ends up being remembered as a turnaround signal.
FOMO vs fundamentals: Retail buys the dip, institutional investors stay cautious
Retail optimism is rising, but institutions are still treading carefully amid lingering macro and earnings risks. Policy and fiscal uncertainty remain elevated, with trade tensions, U.S. debt concerns, and a cautious Fed dominating the backdrop.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.