AUD/JPY and NZD/JPY are two of the biggest movers today. AUD/JPY’s rebound from 82.11 could have completed at 89.24, after failing to sustain above 55 day EMA (now at 84.01). Deeper fall could now be seen through 82.11 to extend the correction from 85.78. At this point, we’d continue to expect strong support from 38.2% retracement of 73.12 to 85.78 at 80.94 to bring rebound. However, sustained break of 80.94 would argue that it’s correcting whole up trend from 59.85, and bring deeper fall to 78.44 resistance turned support.
Similarly, NZD/JPY’s rebound from 76.20 should have completed at 78.46 after failing to sustain above 55 day EMA (now at 78.09). Deeper fall could be seen through 76.20 support to extend the correction from 80.17. We’d still expect strong support from 38.2% retracement of 68.86 to 80.17 at 78.54 to bring rebound. However, sustained break of 78.54 would argue that it’s correcting whole up trend from 59.49. and bring deeper fall to 71.66 resistance turned support.
