- AUD / JPY swings into an unstable range between 70.55 and 70.75 after confirming the bearish chart pattern.
- A prolonged interruption of the immediate support line highlights 200-HMA.
- Bulls can target a March peak beyond 71.15.
AUD / JPY drops to 70.70 / 65 in the middle of the initial Asian session on Friday. That said, the pair confirmed bearish technical formation by sliding below 70.70. However, an immediate upward support line appears to be limiting the pair’s latest fall.
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As a result, sellers are waiting for the downside breakout of support at 70.55 to extend the fall to a 200-HMA level of 69.77. However, 70.00 may offer an intermediate stop during declines.
It should also be noted that the May 15 high near 69.54 could verify bears below 200-HMA.
Alternatively, an upside break above 70.70 can trigger further pair recovery movements towards a three-day uptrend line, now at 71.15.
In a case where the bulls manage to conquer 71.15, the highest in March around 71.50 / 55 will be on their radars.
AUD / JPY Hourly Chart
Trend: expected sales to continue