AUD/JPY drops sharply today on a couple of risk-off factors. Australia itself is troubled by heavier restrictions on surge of Delta variant. New South Wales reported record infections while Melbourne is back in night curfew. Lockdown in the Australian Capital territory was extended for another two weeks. Northern Territory also enters a three day snap lockdown.
AUD/JPY’s strong break of 80.69 support suggests that consolidation from 79.82 has already completed at 81.56, capped well below falling 55 day EMA. Deeper fall is now expected to 79.82 support first. Break will resume the whole decline from 85.78. Such decline is possibly correcting the whole up trend from 59.85, and would target 78.44 resistance turned support, or further to 38.2% retracement of 59.85 to 85.78 at 75.87 before completion.
