AUD/JPY may fall 54 - 77 pips

105.97 is our pivot point.

Our preference

The downside prevails as long as 105.97 is resistance.

Alternative scenario

Above 105.97, look for 106.36 and 106.59.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 106.28 and 106.51).

Supports and resistances

106.59 **

106.36 *

105.97 **

105.82

105.57 last

105.03

104.80 **

104.57 *

104.34 **

Number of asterisks represents the strength of support and resistance levels.