Thu, Feb 09, 2023 @ 06:57 GMT
HomeContributorsTechnical AnalysisAUDJPY Tumbles Below Key Support Zone of 91.00

AUDJPY Tumbles Below Key Support Zone of 91.00

AUDJPY fell sharply on Tuesday after the BoJ raised the cap on 10-year bond yields. The pair broke below the key support (now turned into resistance) territory of 91.00, which had been stopping it from drifting lower since July. Up until now, AUDJPY is nearly 4.5% lower, which combined with the break below 91.00 suggests that the bears are back in the driver’s seat.

The daily oscillators are adding to that narrative by detecting strong bearish momentum. The RSI fell below its 30 line, while the MACD is lying below both its zero and trigger lines, pointing down as well.

If the bears are willing to stay in charge, they could eventually challenge the low of May 12 at 87.25, the break of which could extend the slide towards the 84.60 barrier, marked by the low of March 15. If there are no buyers to be found there either, the bears may get encouraged to dive all the way down to the 80.30 territory, marked as support by the low of January 27.

On the upside, a break above 95.60 may be needed to paint a bullish picture. That barrier served as strong resistance on multiple occasions this year. So, its break may result in advances towards the almost 8-year high of 98.50, hit on September 13, or the psychological round figure of 100.00.

To recap, AUDJPY tumbled on the BoJ decision, breaking the key support territory of 91.00. This confirmed a lower low and suggests that more declines may be in store for the foreseeable future.

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