- AUD/JPY stays depressed around intraday low inside a bearish chart pattern.
- Steady Momentum line, failures to keep recovery moves signal slow grind to the yearly low.
- Key Fibonacci retracement levels, 200-SMA add to the upside barriers.
AUD/JPY takes offers around 80.55, down 0.15% intraday amid Wednesday’s Asian session. In doing so, the cross-currency pair remains inside a two-week-old descending trend channel while refreshing the day’s low.
Given the pair’s repeated failures to rise further towards the 81.00 threshold, coupled with the steady Momentum line and a bearish formation on the four-hour (4H) play, AUD/JPY sellers are likely to keep the reins.
During the anticipated fall, the support line of the stated channel, near 80.25 and the 80.00 psychological magnet could test the bears ahead of directing them to the last month’s low near 79.80. It’s worth mentioning that the yearly bottom surrounding 79.20 will be crucial to watch afterward.
On the flip side, a clear upside break of the channel’s resistance, around 81.10, becomes necessary for the bulls to aim for 38.2% and 50% Fibonacci retracement levels of July’s fall, respectively near 81.50 and 82.00.
However, the pair’s further upside will be challenged by 200-SMA and July 13 swing high near 82.80.
AUD/JPY: Four-hour chart
Trend: Bearish
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