- AUD/JPY break below 82.00 puts selling pressure on the pair.
- The weakened mood of market sentiment exacerbated the demand for the JPY as a safe haven.
The AUD/JPY It falls for the second time in the week and from a technical perspective it is retracing from weekly highs around 82.27 to the 81.50 area. At the time of writing this article, it is trading at 81.55.
AUD/JPY Price Forecast: Technical Outlook
The daily chart AUD / JPY shows that the price action on Friday in the Asian session ranged around the daily pivot point and the daily maximum of 3 February at 81.89 and 82.27 respectively. However, during the European session, it fell to 81.32 a drop of 90 pips, stabilizing around the daily pivot S1 at 81.51.
That said, AUD/JPY remains biased neutral-bearish. Friday’s price action witnessed a downside break of the 50-day moving average (DMA) at 81.58. In the event of a daily close below it, another bearish extension could be triggered before a bottom is confirmed.
AUD/JPY’s first support would be the Feb 1 low at 80.89. A break lower would expose the confluence of a bull pennant lower trend line and the Jan 28 daily low at 80.36, followed by the psychological barrier at 80.00.
Additional technical levels
Source: Fx Street
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