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AUD/JPY turns lower after finding resistance at 87.70

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - AUD/JPY moved away from a relevant resistance and weakened the short-term technical outlook. On a wider perspective, the bias favors the yen.

    AUD/JPY backs away from 87.70

    Last week price bottomed at 86.60 and then rebounded but the upside was capped by the 87.70 area. It was tested several times and also today but the aussie failed to break above. Today during the American session a weak Australian dollar pushed the pair to the downside and dropped to 87.20.

    It was trading at 87.30, less than 20 pips below Thursday’s closing price. AUD/JPY managed to remain above 87.10 (Dec 23 low); a break below would expose 87.00 and December lows that lie at 86.20.

    On a wider perspective the outlook is biased to the downside. At the beginning of December it climbed to 90.80, hitting the highest level since August but then dropped more than 400 pips breaking key supports like the 20-day MA. Technical indicators in the daily chart continue to point to the downside, like Momentum holding below the 100 line.
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