Technical Bias: Neutral
Key Takeaways
“¢ Australian dollar declined sharply against the Japanese yen, but managed to find buyers around the 200-day simple moving average.
“¢ Key indicators suggest downside is more likely in the short term.
“¢ AUDJPY support seen at 94.20 and resistance ahead at 95.00.
The AUDJPY pair once again managed to hold the 200-day SMA, but it looks like sellers are here to stay, and they might push the pair below the 94.00 support level moving ahead.
Technical Analysis
There is a monster resistance around the 96.10-96.60 levels, which acted as a barrier for buyers on many occasions. The AUDJPY pair recently fell sharply to trade close to the 94.00 support area where it found the 200-day SMA, which held the downside in the pair. The pair is now correcting higher and trading around the 38.2% Fibonacci retracement level of the last drop from the 96.11 high to 93.92 low. There are several resistances on the way up for the pair, including the 50% fib level. The most important hurdle can be seen around the 95.27 level, which represents an important confluence area of 61.8% fib level, and 100-day SMA. So, if the pair trades a bit higher from the current levels, then it is very likely that it might find resistance around the mentioned area. Any further strength should see sellers around the 50-day SMA.
On the other hand, if the pair moves lower, then it would be interesting to see how the pair reacts around the 200-day SMA. If sellers manage to take the pair below the same, then a move towards the 92.50 might be on the cards.
Moving Ahead
Later during the next Asian session, the Australian House Price Index (HPI) data will be published by the Australian Bureau of Statistics. The forecast is slated for a 1.1% rise. If the outcome comes below the forecast, then the Australian dollar might trade lower in moving ahead.
More: AUDUSD prediction
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