The AUD/JPY is poised to test 83.00 once again following buyers being rejected at the resistance waiting between 84.75 (R1) and 84.50 (R2). The weakness of the AUD/JPY reflects the weakening of the Australian Dollar versus the Japanese Yen. In fact, the Australian Dollar is trading lower against most major currencies thanks to a stronger U.S. Dollar pushing commodities lower; weak commodities, in turn, hurt the Aussie Dollar.
The AUD/JPY’s 240-minute chart is breaking lower through the uptrend line support of the Ascending Triangle pattern, which is formed by an uptrend line and a horizontal resistance level. The short sell trigger was 83.70 (S), but this was accompanied by very little selling momentum – we see this confirmed by the low Breakout reading of only a single bar.
Expect prices to wander until the Friday Asian session opens and trading participation increases. The breakdown has not yet found the selling pressure it needs in order to trade lower towards the Forecast support area waiting between 81.35 and 78.61 (F). The key to downside follow-though will be the continued resistance at 84.00 – initially – followed by the prior highs of 84.50 and 84.754.
Charts courtesy of Autochartist
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