What is the near-term outlook for AUD/JPY?
Here is their view, courtesy of eFXdata:
NAB discusses AUD/JPY technical outlook and adopts a bearish bias on a multi-days basis.
“In 2009, AUD/JPY rallied from below 56.00 to above 72.00 in four months. Price remained above 70/72 for 10 year+. With price back below 70/72 there is very little reference with regards to support levels, hence the impulsive decline to a low of 59.91 last week.
The subsequent upswing lasted five days and has topped out around the 20 day MA. This is often the case in corrections after lower Bollinger bands have been breached. Wednesday’s Gravestone Doji implies that the multi-day correction is complete and returns AUD/JPY to a MT downtrend bias,” NAB notes.
“We anticipate a retest below 60.00 in the coming weeks. Further downside risk,” NAB adds.
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