AUD/JPY and CAD/JPY break out to the downside on risk aversion in Asian markets. AUD/JPY’s fall from 85.78 resumed and hits as low as as 80.98 so far. Rejection by 4 hour 55 EMA is a near term bearish sign and outlook will stay bearish as long as 82.80 resistance.
Immediate focus is now on 38.2% retracement of 73.12 to 85.78 at 80.94, which is close to medium term channel support. Sustained break there will argue that the fall from 85.78 is indeed corrective whole up trend from 59.85. Deeper fall could then be seen back to 73.12/78.44 support next next.
CAD/JPY also breaks through 87.08 support to resume the whole decline from 91.16. Outlook will stay bearish as long as 88.69 resistance holds. Current fall would target 38.2% retracement of 77.91 to 91.16 at 86.09. Reaction from there would unveil whether it’s correcting the rise from 77.91, or the whole up trend from 73.80.
