AUD/JPY Price Analysis: Double top in place, targets 83.00
- AUD/JPY: The break below 84.60 confirmed the double-top chart pattern, with 83.00 as the target.
- AUD/JPY: The near-term trend is downward, but caution is warranted as the longer-term trend is up.
The AUD/JPY slides to fresh weekly lows during the New York session, down 0.33%, trading at 83.90 at the time of writing. The market mood is upbeat, portrayed by global equities rising during the day. In the FX market, risk-off mood benefits safe-haven currencies like the Japanese yen and the Swiss franc.
Meanwhile, the US Dollar has been offered since the American session got underway, on the back of plunging US T-.boind yields, as investors take notice that the Federal Reserve would not raise rates at the pace expressed by market participants in the money markets.
AUD/JPY Price Forecast: Technical outlook
Daily chart
In the daily chart, the AUD/JPY broke below the neckline of a double-top at 84.60. Additionally, the 84.00 gave way to AUD/JPY sellers, which seem to be in control for the last couple of sessions. Despite that, in the near term, the cross-currency pair has a downward bias; the longer-term trend is up. The daily moving averages (DMA’s) remain below the spot price but would be at risk of being breached as they lie below the double-top target at 83.00, within the 81.80-82.80 range.
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
