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AUD/JPY testng the channle's support line

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    AUD/JPY has broken to the downside and below the 200 sma on the hourly chart at 80.96 with the yen picking up some interest in Tokyo.

    The cross has otherwise been in consolidation for the best part of the week within a range from 80.40/60 and 82.00 resistance. Risk and the price of oil have been mixed and hence the ebbs and flows within that range.

    The RBA minutes were a non event while the Aussie jobs have put a dark cloud over the idea that the RBA will be able to refrain from cutting interest rates, should the story continue to unfold a bearish outlook, for 2016. Japan, on the other hand, is a different genre of story and pressures are mounting on the BoJ to act, weighing on the Yen, despite its safe haven status in uncertain and tightening financial markets.

    AUD/JPY levels

    The cross trades well below the pivot of 81.47 and targets S2 at 79.73 ahead of 79.11 and S1. The price is currently testing the channel's support line and a break co the level could be significant with the recent lows of 77.58 revealed below S3.

    On a correction, the 20 dma at 82.51 is a key level to monitor and would snap the right hand shoulder of the H&S on the daily sticks that looks to be developing in a continuation of the downtrend.
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