- AUD/JPY has bounced strongly from the weekly low of 74.94.
- However, the five-week-long bearish trendline is still intact.
While AUD/JPY is flashing green at press time, it is yet to clear the key bearish trendline.
The pair is currently trading 75.70, representing a 0.2% gain on the day, having risen from 74.94 to 75.65 on Wednesday.
The bounce from 75.65 to 75.70 has reversed the major of decline seen on Tuesday. However, the bias still remains bearish as the trendline falling from Au./31 and Sept. 15 highs is intact.
At press time, the trendline resistance is located at 76.00. A daily close above that level would imply a bullish reversal and open the doors to 76.87 (July 22 high).
Alternatively, a move below Wednesday’s low of 74.94 would establish a fresh lower low and may yield deeper losses.
Daily chart
Trend: Bearish
Technical levels
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