AUD/JPY is once again the top mover today. But unlike yesterday, it’s now the biggest gainer. The high volatility in AUD/JPY is a clear reflection of what’s happening in the stock markets. Though, we’d like to point out that DOW is so far up just 0.62% for now. DOW it as high as 24657.18 and couldn’t even touch the lowest side of the gap made yesterday. Thus, rebound in the US stocks is not too convincing yet.
Coming back to AUD/JPY, it defended the mentioned key near term support of 81.24 as mentioned yesterday, with just a brief breach to 81.19. It also holds above 55 day EMA. Hence there is no confirmation of rejection by 38.2% retracement of 90.29 to 78.65 at 83.02 yet. Intraday bias stays neutral first.
Whether we can still call that a double bottom (78.67, 78.56) is not that important now. In any case, sustained break of 83.02 will indicate medium term reversal. And, further rally could be seen to 61.8% retracement of 90.29 to 78.65 at 85.79. Meanwhile, firm break of 81.24 confirm the rejection by 83.02 fibonacci level. Also, that would mark rejection by 55 week EMA. And, medium term bearishness would be retained and retest of 78.56 low should be seen next.
