AUD/JPY Price Analysis: On the back foot around 50% Fibonacci
- AUD/JPY takes a U-turn from support-turned-resistance, extends losses.
- Multiple stops around 73.00 could question sellers ahead of 61.8% Fibonacci retracement support.
- 100-day SMA adds to the resistance.
Failure to cross the support-turned-resistance line keeps AUD/JPY weak while flashing 73.60 as a quote during Thursday’s Asian session.
The pair tried offering an upside break to the rising resistance line, the previous support, since early-September. Though, failure to break the same, coupled with bearish MACD, seems to direct the pair towards 50% Fibonacci retracement of its August-December 2019 upside.
Following the immediate rest-point around 73.40, multiple stops near 73.00 could challenge the sellers before pushing them to 61.8% Fibonacci retracement of 72.70.
During the pair’s further declines below 72.70, October 2019 low close to 71.75/70 will be on the bears’ radar.
Alternatively, an upside clearance of the support-turned-resistance, at 74.00 now, needs to cross a 100-day SMA level of 74.40 on a daily closing basis to regain buyers’ confidence.
With that, AUD/JPY prices can aim for 75.00 during further recovery.
AUD/JPY daily chart
Trend: Bearish
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.
