- Short-term bearish pattern favor sellers targeting current month low.
- Oversold RSI may challenge increased selling pressure.
With the three-week-old descending trend-channel continues to direct AUD/JPY moves downwards, the pair presently traders near 75.18 during the initial Asian session on Thursday.
The current month low around 74.96 seems an immediate target for sellers following the bearish pattern. Though, oversold levels of relative strength index (RSI) might question bears during further moves, if not then channel’s lower line surrounding 74.70 could be on their radar.
If at all prices keep declining under 74.70, July 2016 low at 74.50 can offer an intermediate halt prior to plummeting to the year 2016 bottom around 72.40/45.
On the upside, 21-day simple moving average (SMA) level of 75.63 acts as nearby resistance ahead of channel’s upper-line, at 75.83.
Should buyers defy the bearish pattern by fueling the quote beyond 75.83, May 20 high near 76.40 and 77.00 could become their favorites.
AUD/JPY technical analysis