The price movement of AUD/JPY has been guided by several channels, the most important of which for long-term trading is the dominant channel down. Its upper boundary was reached late January when the pair made a U-turn from the monthly R1 at 88.97.
The currency exchange rate is likely to continue depreciating within the following trading sessions in line with the junior channel. The pair could breach the upper boundary of the junior channel in the short term; however, the combined resistance of the 55—hour SMA and the weekly PP near the 84.24 regions could force the price south.
In the meantime, technical indicators flash bearish signals. This suggests that bears’ dominance over the rate is likely to grow stronger.
