AUD/JPY may fall 60 - 88 pips

Our pivot point stands at 102.89.

Our preference

The downside prevails as long as 102.89 is resistance.

Alternative scenario

The upside breakout of 102.89, would call for 103.37 and 103.65.

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 negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 102.84 and 103.20). Finally, the AUD/JPY has penetrated its lower Bollinger band (102.43).

Supports and resistances

103.65 **

103.37 *

102.89 **

102.71

102.25 last

101.65

101.37 **

101.09 *

100.81 **

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