AUD/JPY Price Analysis: Steps back from rising wedge resistance after RBA’s FSR

AUD/JPY fails to extend the recovery moves.
RBA’s FSR cites risks to the financial system that was earlier strong.
Sellers will wait for the confirmation of the bearish chart pattern.
Bulls will aim to fill the early-March gap during fresh advances.

Anil Panchal FXStreet

With the RBA’s Financial Stability Review (FSR) citing downside risks, AUD/JPY drops from the short-term rising trend line to the intraday low of 67.64, currently around 67.78, during the early Thursday.

Read: RBA’s Financial Stability Review: Financial system was in a strong position heading into virus impacts, faces increased risks

The pair’s pullback from the key resistance line also takes clues from the overbought RSI conditions, which in turn suggests further declines towards the formation support, at 67.15 now.

If at all AUD/JPY prices drop 67.15, it confirms the bearish pattern and indicates the fall towards 63.00. However, a 200-HMA level of 66.18 can offer an intermediate halt during the declines.

Alternatively, the pair’s recovery moves beyond 68.16 will defy the pattern and escalate the run-up to fill the early-March month gap below 69.60.

AUD/JPY hourly chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	67.75
Today Daily Change	-5 pips
Today Daily Change %	-0.07%
Today daily open	67.8

Trends
Daily SMA20	65.58
Daily SMA50	69.62
Daily SMA100	72.31
Daily SMA200	72.97

Levels
Previous Daily High	67.94
Previous Daily Low	66.48
Previous Weekly High	67.27
Previous Weekly Low	64.4
Previous Monthly High	71.52
Previous Monthly Low	59.9
Daily Fibonacci 38.2%	67.38
Daily Fibonacci 61.8%	67.04
Daily Pivot Point S1	66.87
Daily Pivot Point S2	65.95
Daily Pivot Point S3	65.42
Daily Pivot Point R1	68.33
Daily Pivot Point R2	68.86
Daily Pivot Point R3	69.78

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.

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