AUD/JPY may fall 50 - 75 pips

Our pivot point stands at 106.36.

Our preference

Target 105.21.

Alternative scenario

The upside breakout of 106.36, would call for 106.76 and 107.01.

Comment

The RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the price is below its 20 period moving average (106.02) but above its 50 period moving average (105.91).

Supports and resistances

107.01 **

106.76 *

106.36 **

106.20

105.96 last

105.46

105.21 **

104.97 *

104.73 **

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