Bears keep the reins around 80.00

  • AUD/JPY fades pullback from 50-bar SMA, keeps bearish signals.
  • Double top confirmation, sustained break of one-month-old rising trend line favor bears.
  • Key Fibonacci retracement levels, 200-bar SMA add to the downside filters.

AUD/JPY battles 80.00 in a recent recovery move during the initial Asian session on Wednesday. The quote earlier took a U-turn from 50-bar SMA while trying to reverse the key support break portrayed on Monday.

Despite the pair’s recent bounce off 79.86, the 50-bar SMA near 80.30 probes short-term AUD/JPY buyers ahead of the previous support line near 80.66.

In a case where the AUD/JPY prices rise past-80.66, the double top formation around 80.85-92 and the 81.00 round-figure will be the key to watch.

Meanwhile, 38.2% Fibonacci retracement of December 21 to January 08 upside, near 79.60, can challenge intraday sellers of AUD/JPY.

Also acting as the key support are 200-bar SMA and 61.8% Fibonacci retracement level, respectively around 79.00 and 78.80.

Overall, AUD/JPY may witness corrective pullback but the bulls aren’t likely to regain the controls.

AUD/JPY four-hour chart

Trend: Bearish


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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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