AUD/JPY may fall 71 - 106 pips

Our pivot point stands at 101.21.

Our preference

The downside prevails as long as 101.21 is resistance.

Alternative scenario

Above 101.21, look for 101.80 and 102.15.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (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 101.08 and 101.19). Finally, the AUD/JPY is trading below its lower Bollinger band (standing at 100.73).

Supports and resistances

102.15 **

101.80 *

101.21 **

100.98

100.63 last

99.92

99.57 **

99.22 *

98.87 **

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