AUD/JPY near long-term support
During the past week, the Australian Dollar has depreciated against the Yen in a minor falling wedge. A look at this movement south in a longer perspective reveals that the Aussie was located in the middle of a channel up when this sudden reversal occurred.
The pair is currently trading near the lower boundary of this channel near the 88.90 mark. It seems that the falling wedge has reached its maturity. From theoretical point of view, the Aussie should break out to the upside—a move likewise supported by several technical signals.
The short-term upside target could be the 200-hour SMA at 89.00. Traders should be quite attentive at this level to determine if the pair’s failure to test the upper channel boundary might not point to prevailing bearish sentiment in the medium term.
In case the anticipated breakout occurs southwards, the nearest significant support is formed by the monthly PP at 87.20.
The pair is currently trading near the lower boundary of this channel near the 88.90 mark. It seems that the falling wedge has reached its maturity. From theoretical point of view, the Aussie should break out to the upside—a move likewise supported by several technical signals.
The short-term upside target could be the 200-hour SMA at 89.00. Traders should be quite attentive at this level to determine if the pair’s failure to test the upper channel boundary might not point to prevailing bearish sentiment in the medium term.
In case the anticipated breakout occurs southwards, the nearest significant support is formed by the monthly PP at 87.20.
