Australian Dollar at Risk as AUD/JPY Enters Downtrend?
The Australian Dollar may be vulnerable to the Japanese Yen following a couple of bearish technical developments. This follows a rejection of the 86.253 - 85.909 resistance zone.
AUD/JPY recently confirmed a breakout under the 23.6% Fibonacci Retracement at 84.50 on the 4-hour chart. This also follows a bearish Death Cross between the 20- and 50-period Simple Moving Averages.
This has exposed the 38.2% level at 83.416. Still, prices remain above the 200-period line, which could reinstate the broader upside focus. On the other hand, breaking under it could open the door to extending losses towards the September low at 78.825.
Keep a close eye on the 82.028 - 81.662 inflection zone. The latter price is the 61.8% retracement.
Positive RSI divergence does show fading downside momentum, which can at times precede a turn higher.
Clearing 86.253 would open the door to resuming gains since August.
AUDJPY
AUD/JPY recently confirmed a breakout under the 23.6% Fibonacci Retracement at 84.50 on the 4-hour chart. This also follows a bearish Death Cross between the 20- and 50-period Simple Moving Averages.
This has exposed the 38.2% level at 83.416. Still, prices remain above the 200-period line, which could reinstate the broader upside focus. On the other hand, breaking under it could open the door to extending losses towards the September low at 78.825.
Keep a close eye on the 82.028 - 81.662 inflection zone. The latter price is the 61.8% retracement.
Positive RSI divergence does show fading downside momentum, which can at times precede a turn higher.
Clearing 86.253 would open the door to resuming gains since August.
AUDJPY