AUD/JPY establishing new bearish structure??
AUD/JPY has been under selling pressure so far this week, as Aussie crosses were generally under pressure across the board. Yesterday, the pair hit a one-month low of 84.62 but failed to close below 85.20, March 23rd low, which is seen as critical level for a change in trend.
The pair breached below its 50-day moving average, now at 85.07, both yesterday and today. It is also testing the 23.6% fibonacci retracement of the November ’11 low to March’12 high by 85.67, which the pair has failed to close lower since February 21st. A decisive close below the 50 DMA and this fibonacci level would give scope for a change in trend to a bearish outlook. To the upside, the pair will need to close above March 27th high of 87.58, as it would break a recent established pattern of ‘lower highs’, since hitting this year’s high of 88.64. Downside targets are represented by 83.35, the 38.2% fibonacci level.
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