Australian Dollar versus Japanese Yen has broken three major resistances 79.48, 80.70 and 81.50 but failed to stay above the 61.8% fibb retracement level of ours and provides us with a strong closing below exponential moving averages 50 and 200 in daily time frame. Our upper trend line on the four hourly chart which is positioned at 80.75 price action is also another hurdle on the interday time frame for the AUDJPY to make any further progress with gains. The pair is standing above one of our important support zones 79.90-80.0 but is taking a bearish reversal from exponential moving average 50 on the four hourly time frame which is indicating that AUDJPY heading lower again. On the daily time frame, AUDJPY is still standing above 50% fibb retracement level which is high in liquidity and supply demand, the aforementioned level needs to be broken out with a bearish impulsive stance that will open the doors towards 38.2% fibb level at 78.73. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The pair came under renewed selling pressure after the Reserve Bank of Australia (RBA) today released its quarterly bulletin despite upbeat economic data. The employment rate dropped by 146K as compared to the market consensus of 90K as per the Australian Bureau of Statistics. However, the technical indicators witnessed a huge drop of 3.7% in July. The jobless rate saw a drop of 4.5% in August from 4.9% in June. The inflation expectations in Australia eased to 3.30% in August from 3.70% in July. The sentiment was sour after New South Wales, Australia’s largest population state reported a jump in fresh CoVID-19 cases. There were fresh 1351 cases were recorded on Wednesday as compared to 1259 a day earlier. Getting back to the technical side, the pair is bullish above 50% fibb retracement level, only a strong bearish closing below in daily can alter the odds towards favoring the bears. Also keep in mind that 80.30 to 81.0 is a no trade zone. 

AUDJPY

Sep 17 2021