By analyzing the daily technical chart we can see that bears are leading in the game and playing at front foot, even they are dominating the bears at every nook and corner but the momentum they are having with themselves is too strong.
The pair is showing pure weakness from last couple of days, as we can see on the daily technical chart that bears are playing at their front foot and presently pair is sustaining below the moving average lines which is indicating us further bearish signal.
The Australian Dollar (AUD) against the Japanese Yen (JPY) is an exciting pair for its relation to risk. The pair is frequently among one of the most highly correlated pairs to price action in US equities on a short to medium term basis. The pair has a propensity to rise in a low risk environment on carry flows while the opposite is true when we see a ‘risk-off’ approach in the markets.
Well daily chart is giving impression like bears are leading in the game and taking the charge it seems like they are driving the car. If other thing remains constant, it is likely that the Australian Dollar continues to gain against the Japanese Yen during the following trading sessions. The next targets for the pair could be the 72 level.
The odds are in favor of bears and intraday bias remains bullish on the pair as long as 75.00 level remains intact. A bearish crossover on MACD indicator is favoring the bears and providing us bearish signal for the time being and RSI is also providing bearish signal. The 75.00 level is immediate resistance level followed by 76.00 whereas 72.50 level is strong key support level followed by 71 level.
Based on chart and studies above we would suggest our readers that sell at 73.50 for the target of 71.50 and 70 with the tight stop loss of 75.00.
