AUD/JPY may fall 82 - 120 pips

Our pivot point stands at 94.80.

Our preference

The downside prevails as long as 94.80 is resistance.

Alternative scenario

The upside breakout of 94.80, would call for 95.45 and 95.83.

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 is trading under both its 20 and 50 period moving average (respectively at 94.69 and 95.03). Finally, the AUD/JPY has penetrated its lower Bollinger band (94.25).

Supports and resistances

95.83 **

95.45 *

94.80 **

94.55

94.23 last

93.41

93.03 **

92.64 *

92.26 **

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