- AUD/JPY fizzles the bounce off one-month low, struggles around the key support confluence near 74.35/25.
- Bearish MACD, sustained trading below 61.8% Fibonacci retracement favor the sellers.
AUD/JPY struggles to keep recovery moves from the lowest since September 28, marked the previous day, while taking rounds to 74.35 during the early Wednesday morning in Asia. In doing so, the pair steps back from the confluence of 200-day EMA and an upward sloping trend line from June 12.
Even so, bearish MACD and sustained trading below 61.8% Fibonacci retracement of June-August upside keep the AUD/JPY sellers hopeful.
Hence, a clear downside past-74.25 will set the tone for the pair’s downside towards the late-June lows surrounding 73.35/30. Though, the September month’s low of 73.97 can offer an intermediate halt during the fall.
Should AUD/JPY prices remain weak past-73.30, bottoms marked on June 22 and 12, respectively around 72.70 and 72.50 will return to the charts.
Alternatively, a daily closing beyond the 61.8% Fibonacci retracement level of 74.80 will aim for the 75.00 round-figure. However, any more upside will not hesitate to direct the AUD/JPY buyers towards the 50% Fibonacci retracement and the monthly low of 75.50 and 76.50 in that order.
AUD/JPY daily chart
Trend: Pullback expected
Credit: FX Street