AUD/JPY technical analysis: Multi-day descending trend-line indicate further weakness

21-HMA and 9-day long resistance-line limit the pair’s upside.
RSI also not oversold, signaling additional declines.

Anil Panchal FXStreet

With the sustained trading below short-term descending trend-line, AUD/JPY seems on the back foot while trading near 74.40 during the early Asian session on Thursday.

Not only a downward sloping trend-line since June 11 but pair’s declines beneath 21-hour moving average (21-HMA) also portray the underlying weakness that can drag it to sub-74.00 area.

However, 74.30 and 74.18 are likely intermediate halt that might be availed during the downpour.

Should there be additional south-run under current month low of 73.92, 73.00 and the year 2016 bottom 72.40 could flash on sellers’ radar.

It is worth noting that 14-bar relative strength index (RSI) is also not in the oversold territory, favoring further declines.

Meanwhile, an uptick beyond 74.47 mark comprising 21-HMA needs validation from trend-line break, at 74.64 now, in order to aim for 74.80 and 75.00 numbers to the north.

Furthermore, 61.8% Fibonacci retracement of the latest slide at 75.24 and June 11 high near 75.70 could become buyers’ favorites during the extra rise.

AUD/JPY hourly chart

Trend: Bearish

1. R3 75.63
2. R2 75.16
3. R1 74.87
PP 74.4
1. S1 74.11
2. S2 73.63
3. S3 73.35

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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