- AUD/JPY fell by 1% on Tuesday, forming a bearish engulfing candle.
- Technical studies indicate scope for a drop to recent lows.
AUD/JPY fell by 1.16% on Tuesday, confirming its biggest single-day percentage decline since June 11. On the day, the currency pair declined by over 2%.
Further, Tuesday’s decline reversed Monday’s gain and formed a bearish engulfing candle on the daily chart.
That candlestick pattern indicates the bounce from the Sept. 24 low of 73.97 has ended, and the bears have regained control.
That, alongside a bearish or below-50 reading on the 14-day relative strength index, suggests scope for a re-test of recent lows.
The bias would turn bullish if the pair finds acceptance above 76.16 (Tuesday’s high).