AUD/JPY’s decline continues today after RBA delivered the 50bps rate hike as expected, and turned a bit cautious about the policy normalization path ahead. Of course, Yen’s persistent, broad-based rally elsewhere is a factor pressing the cross.
With 91.41 support taken out, immediate focus is now on 100% projection of 96.86 to 91.41 from 95.68 at 90.23. Firm break there will be a sign of downside acceleration. That would also raise that chance that it’s already in correction to the medium term up trend. In this bearish case, current decline should target next support zone between 95.78 and 87.28 next.
Nevertheless, above 92.27 minor resistance will indicate stabilization first, before taking the next move.
