- AUD/JPY remains on the back foot after six consecutive days of declines.
- Bearish MACD, inability to bounce back beyond the key Fibonacci retracement suggest further downside.
AUD/JPY drops to 74.48 during the early Tuesday morning in Asia. The pair bounced off 74.52 to 74.95, before declining to 74.40, the previous day. In doing so, the quote marks sustained trading below 61.8% Fibonacci retracement of its June-August upside.
Not only the failures to cross the key Fibonacci retracement but bearish MACD conditions also direct AUD/JPY sellers to attack a four-month-old upward sloping trend line, at 74.32 now.
While September month’s low of 73.97 can probe the bears after the break of the mentioned support line, any more downside will not hesitate to visit the 200-day SMA level of 72.85 and the June month’s low of 72.52.
Alternatively, an upside clearance of 61.8% Fibonacci retracement level, at 74.80, will find multiple barriers around 75.00 portrayed during the early-October.
In a case where the bulls manage to cross 75.00 on a daily closing, the 50% Fibonacci retracement near 75.50 and a falling trend line from August 31, currently around 76.15 will gain the market’s attention.
AUD/JPY daily chart
Trend: Bearish
