AUD/JPY Price Analysis: Bears eye 91.10 on breaking fortnight-old support
- AUD/JPY licks its wounds at weekly low, sidelined of late.
- Clear break of 50-SMA, two-week-old ascending trend line favor sellers.
- Area comprising lows marked since early October gains the bear’s attention.
- Buyers need validation form 200-SMA before retaking control.
AUD/JPY holds lower ground near 93.30 during Friday’s Asian session, after posting the biggest daily loss in two weeks the previous day.
In doing so, the cross-currency pair braces for further downside as it already broke the key support late Thursday.
That said, a clear downside break of convergence of the 50-SMA and a fortnight-old ascending trend line, around 92.40-50 by the press time, keeps AUD/JPY bears hopeful of witnessing further downside.
The AUD/JPY sellers also take clues from the bearish MACD signals while aiming for the 92.00 threshold as the immediate support.
It’s worth noting that the horizontal region comprising multiple lows marked since early October, near 91.10, appears the key support to watch past 92.00, a break of which will highlight the October month low near 90.85 for the AUD/JPY bears.
Alternatively, recovery remains elusive below the 92.40-50 support-turned-resistance.
Even so, a downward-sloping resistance line from November 01, close to the 93.00 round figure, could challenge the AUD/JPY bears.
In a case where the pair manages to remain firmer past 93.00, the 200-SMA and 50% Fibonacci retracement of the pair’s late October moves, near 93.30, will be crucial to watch.
AUD/JPY: Four-hour chart
Trend: Further downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
