AUD/JPY Price Analysis: Tweezers-top at weekly tops around 82.20 looms as sellers take control
- The AUD/JPY downward break at 82.00 exerts selling pressure on the pair.
- Dampened market sentiment mood exacerbated demand for the safe-haven JPY.
- A tweezers-top near the weekly tops looms and paves the way towards 80.00.
The AUD/JPY slides for the second time in the week, and from a technical perspective, it is forming a tweezers-top candle chart pattern, retreating from weekly tops around 82.27 to the 81.50s region. At the time of writing is trading at 81.55.
AUD/JPY Price Forecast: Technical outlook
AUD/JPY daily chart, shows that Friday’s price action in the Asian session seesawed around the daily pivot point and February 3 daily high, at 81.89 and 82.27, respectively. However, during the European session, dampened market mood conditions spurred a drop towards 81.32 for a 90-pip fall, stabilizing around the S1 daily pivot at 81.51.
That said, the AUD/JPY remains neutral-bearish biased. Friday’s price action witnessed a downward break of the 50-day moving average (DMA) at 81.58. In the event of a daily close below of it, that will confirm the tweezers-top, which could fuel another leg-down before confirming a bottom.
The AUD/JPY first support would be the February 1 low at 80.89. A downward break would expose the confluence of a bottom-trendline of a bullish-flag and the January 28 daily low at 80.36, followed by the psychological 80.00 barrier.
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.
