AUD/JPY: Balanced Demand & Supply Going On

August 10, 2018


From the daily outlook of technical chart we can see that pair is trading in horizontal channel or we can say that the it is trading between the range of 80.44 to 84.43 level. Well these types of channel are very profitable opportunity as pair trades in a predictable way. Buy at support line and sell at resistance level, the same thing is going on in the pair for the time being. Presently pair is falling down and it is expected that pair will test the support line which is lying at 80.44 level.


The Aussie has halted its slide against the Japanese Yen after China’s Consumer Price Index and Producer Price Index both beat expectations, implying that the current escalation in the US-China trade war is not having nearly as big a negative effect as many market participants have been fearing.



By applying the Fibonacci retracement line from 89.07 level to 80.44 level we can see that it retraced almost 50% level and then entered into an intermediate consolidation phase. The pair is trading and sustaining below the major and minor EMA lines which is generating bearish signal for the time being.


On the daily chart we can see that pair is making successively lower lows and lower highs on daily basis. A big bearish marabuzo candlestick is generating bearish signal. Odds are in favor of bears and intraday bias remains bearish on the pair. A valid breakout on either side of trend channel will give us new buy or sell signal and open the way towards the further downside or further upside.


A bearish crossover on MACD indicator is favoring the bears and providing bearish signal for the time being and RSI is also providing sell signal from negative territory. The 0.8500 level is immediate resistance level followed by 0.8570 whereas 0.8100 level is strong key support level followed by 0.8040 level.

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