AUD/JPY’s strong break of 80.48 key support today its worth a mention. This marks resumption of down trend form 90.29 (2017 high). AUD/JPY should now head to 61.8% retracement of 72.39 to 90.29 at 79.22 next.
In the bigger picture, rejection from 55 week EMA affirmed the bearish case that corrective rise from 72.39 (2016 low) has completed at 90.29. Fall from 90.29 should at least be at the same degree as the rise from 72.39 to 90.29. That is, fall from sustained break of 79.22 should pave the way to retest 72.39 low.
In between, AUD/JPY will face an import fibonacci level of 100% projection of 90.29 to 80.48 from 83.92 at 74.11. Firm break there will suggests that fall from 90.29 is likely an impulsive move. And that will increase the chance of resuming the down trend from 105.42 (2013 high) through 72.39.
