In such a day of global stock market selloff, it’s unsurprising that AUD/JPY is the top mover so far.
But we’d like to point out that, as in EUR/JPY and even USD/JPY, Yen bulls seem refusing to commit for now. AUD/JPY breached 79.05 support but quickly recovered. It could take more time for them to make up their mind.
For AUD/JPY specifically, it might be because it’s now close to key long term fibonacci level of 61.8% retracement of 72.39 to 90.29 at 79.22.
But after all, outlook in AUD/JPY is rather bearish as it’s staying comfortably below falling 55 day EMA and falling 55 week EMA. So, as long as 80.48 resistance holds, we’d expect further downside ahead. Break of 78.67 low should be seen next. And in that case, next target will be 78.6% retracement of 72.39 to 90.29 at 76.22.
