AUD/JPY Technical Analysis: Eyes 75.00 on bearish divergence of key indicator

AUD/JPY is looking south with the hourly chart reporting a bearish divergence of MACD.
The daily indicator is also flashing signs of bullish exhaustion.
AUD likely to remain on the defensive due to the dovish RBA's SoMP.

Omkar Godbole FXStreet Contributor

AUD/JPY risks falling to 75.00 with the hourly chart moving average convergence divergence (MACD) histogram reporting a bearish divergence.

A bearish divergence occurs when the indicator charts lower highs, contradicting higher highs on price and is considered an early warning of an impending drop.

The daily MACD is printing shallow bars above zero, a sign of weakening of bullish momentum.

The case for pullback looks stronger if we take into account the dovish RBA SoMP released a few minutes before press time. The statement carried a downward revision of the December growth forecast and said the wage growth is likely to remain low and unlikely to pick up anytime soon.

The pair is currently trading at 75.30, having hit a high of 75.56 leading up to the release of RBA's SoMP.

A drop to 75.00 may remain elusive if China's trade data blows past expectations, strengthening the already bid equities and weakening demand for the anti-risk JPY.

Hourly chart

Trend: Pullback

Technical levels

AUD/JPY

Overview
Today last price	75.28
Today Daily Change	-0.12
Today Daily Change %	-0.16
Today daily open	75.4

Trends
Daily SMA20	74.41
Daily SMA50	73.5
Daily SMA100	73.72
Daily SMA200	75.79

Levels
Previous Daily High	75.68
Previous Daily Low	74.56
Previous Weekly High	75.3
Previous Weekly Low	74.06
Previous Monthly High	75.3
Previous Monthly Low	71.73
Daily Fibonacci 38.2%	75.25
Daily Fibonacci 61.8%	74.99
Daily Pivot Point S1	74.74
Daily Pivot Point S2	74.09
Daily Pivot Point S3	73.62
Daily Pivot Point R1	75.86
Daily Pivot Point R2	76.33
Daily Pivot Point R3	76.98

Author

Omkar Godbole

FXStreet Contributor

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

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