Viktor has traded Forex and stocks since 2001 and his experience includes working as a hedge fund manager and market analyst at major Brokerage firms such as Instaforex and IronFX.
Hello traders! The AUD/JPY formed an extremely strong resistance at 77.54 level, which was five consecutive times. Clearly, bears are strongly defending this level which suggests the continuation of the downside move.
Besides, the ascending channel has been broken and acted as the resistance for AUD/JPY. Today there was a rejection of the 50 Exponential Moving Average yet again suggesting further downside pressure.
All-in-all, as long as 77.54 resistance is being respected, AUD/JPY will continue trending down. The strong support is located at 75.64 which corresponds to the previous supply/demand zone as well as 38.2% Fibonacci retracement level as per the chart below.
Bias: Strongly bearish while below 77.54
Potential Resistance Zone: 77.00 – 77.30
Potential Targets: 75.63
Have a profitable trading!