AUD/JPY Technical Analysis: At two-week lows, eyes break below Jan. 25 low of 77.51

Omkar Godbole FXStreet Contributor

The AUD/JPY pair has dropped to 77.55 - the lowest level since Jan. 25 - in response to Reserve Bank of Australia's (RBA) downward revision of growth and inflation forecasts.

The pair is now trading within a striking distance from the key support at 77.51 (Jan. 25 low). and could soon find acceptance below that level as the path of least resistance is to the downside.

Daily chart

As seen above, the pair dived out of the rising wedge on Wednesday, confirming a bullish-to-bearish trend change. The 14-day relative strength index (RSI) is reporting bearish conditions with below-50 reading.

Therefore, the pair is likely to beat the support at 77.51. That would invalidate the bullish higher low and open the doors for a deeper drop toward 76.00.

Trend: bearish

AUD/JPY

Overview:
    Today Last Price: 77.58
    Today Daily change: -0.46 pips
    Today Daily change %: -0.59%
    Today Daily Open: 78.04
Trends:
    Daily SMA20: 78.52
    Daily SMA50: 79.12
    Daily SMA100: 80.15
    Daily SMA200: 81.05
Levels:
    Previous Daily High: 78.31
    Previous Daily Low: 77.75
    Previous Weekly High: 79.61
    Previous Weekly Low: 77.96
    Previous Monthly High: 79.4
    Previous Monthly Low: 70.71
    Daily Fibonacci 38.2%: 77.96
    Daily Fibonacci 61.8%: 78.1
    Daily Pivot Point S1: 77.75
    Daily Pivot Point S2: 77.47
    Daily Pivot Point S3: 77.19
    Daily Pivot Point R1: 78.31
    Daily Pivot Point R2: 78.59
    Daily Pivot Point R3: 78.87

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD challenges 1.1800, two-week lows

EUR/USD remains on the defensive, extending its leg lower to the vicinity of the 1.1800 region, or two-week lows, on Tuesday. The move lower comes as the US Dollar gathers further traction ahead of key US data releases, inclusing the FOMC Minutes, on Wednesday.

GBP/USD looks weaker near 1.3500

GBP/USD adds to Monday’s pessimism and puts the 1.3500 support to the test on Tuesday. Cable’s marked pullback comes in response to extra gains in the Greenback while disappointing UK jobs data also collaborate with the offered bias around the British Pound.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.