AUD/JPY may fall 56 - 84 pips

Our pivot point is at 103.31.

Our preference

The downside prevails as long as 103.31 is resistance.

Alternative scenario

The upside breakout of 103.31, would call for 103.79 and 104.07.

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 stands below its 20 and 50 period moving average (respectively at 103.19 and 103.62).

Supports and resistances

104.07 **

103.79 *

103.31 **

103.13

102.92 last

102.36

102.08 **

101.79 *

101.51 **

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