- AUD/JPY reversal from technical resistance targeting key near-term inflection zone
The Japanese Yen has rallied nearly 2% against the Australian Dollar as AUD/JPY reversed from confluence resistance earlier in the month. The pullback is now targeting a key support confluence / inflection zone just lower - here are the updated targets and invalidation levels that matter on the AUD/JPY charts.
AUD/JPY DAILY PRICE CHART
Technical Outlook: In my latest AUD/JPY Weekly Technical Perspective we highlighted a critical resistance confluence at 83.00/05 with the immediate long-bias vulnerable while below this threshold. An ascending pitchfork extending off the October lows further highlights this key resistance range. A break below the median-line today in New York trade is now approaching the first major support zone at 81.23/34 - this region is defined by the 38.2% retracement of the advance off the yearly low, the 100-day moving average and the 100% extension of the decline off the monthly high. This region represents a key inflection zone in price and we’re looking for a reaction here today.
AUD/JPY 240MIN PRICE CHART
Notes: A closer look at price action shows AUD/JPY breaking below the October trendline early in the week with the decline now approaching confluence support at 81.23/34- looking for a reaction here. If this pullback is a simple correction, price would need to stabilize above this threshold into the close. A break below would expose the June low / lower parallel at 80.63 with the 61.8% retracement just lower at 80.28- both areas of interest for exhaustion / long-entries IF reached.
Initial resistance now stands back at the median-line backed by the weekly open at 82.40. Near-term bearish invalidation stands with the high-day close at 82.75- a breach / close above this threshold would shift the focus back towards topside objectives at 83.05 and 83.26.
Bottom line: AUD/JPY is approaching a key near-term inflection zone at 81.22/34- with the broader outlook still weighted to the topside while within this formation. From a trading standpoint immediate risk is for a slip lower but we’re looking to fade weakness into these support targets with a breach above 82.75 needed to mark resumption towards the upper parallels.
AUD/JPY TRADER SENTIMENT
RELEVANT AUD/JPY DATA RELEASES
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