Upside risks have dominated the Australian Dollar against the Japanese Yen, thus allowing the currency pair climbing 350-pips or 4.32% within a couple of days. The latest peak was yesterday when the rate made a U-turn after hitting a resistance cluster set by the weekly and the monthly PPs near 84.35.
The exchange rate has been moving along a junior ascending pattern until it reached the 50.00% Fibonacci retracement level and reversed south. This retracement can be measured by connecting the low at 80.52 and the high at 88.50.
Given that a breakout had occurred through the lower boundary of an ascending channel, the currency exchange rate is likely to decline further south until it encounters a support level formed by the combination of the 55-,100-, and 200– hour SMAs.
