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Home » Technical Analysis » Daily » AUDJPY » AUDJPY – Aussie Dollar Eyeing More Losses

AUDJPY – Aussie Dollar Eyeing More Losses

Posted by FXTimes in AUDJPY - April 7th, 2016 6:03 am GMT

Aussie Dollar Yen AUDJPY

Key Points

  • Aussie dollar weakened during the Asian session against the Japanese Yen, and looks set for more losses.
  • There was an ascending channel pattern formed on the hourly chart of the AUDJPY pair, which was broken to ignite more losses.
  • Japanese Foreign-exchange reserves, released by Ministry of Finance posted a reading of $1,262.1B, more than the last reading of $1,254.1B.
  • Moreover, the Japanese Foreign investment in Japan stocks came in at ¥415.2B, up from the last revised reading of ¥-358.8B.

Technical Analysis

The Aussie Dollar was under a lot of pressure against the Japanese yen recently, as the latter one gained bids and traded higher. There was an ascending channel pattern formed on the hourly chart of the AUDJPY pair, which was breached by the sellers recently to open the doors for more losses.

AUDJPY

The pair is also well below the 50 hourly simple moving average, which is a bearish sign. And, it recently failed near the 50% Fib retracement level of the last drop from the 84.63 high to 82.80 low completing a correction phase.

On the upside, the broken channel support trend line may now act as a resistance for the AUDJPY pair.

Japanese Foreign-Exchange Reserves

Earlier today during the Asian session, there were a couple of low risk events scheduled in Japan, including the Japanese Foreign-exchange reserves by the Ministry of Finance. There was an increase in Foreign-exchange reserves from the last $1,254.1B to $1,262.1B in March 2016.

Moreover, the Japanese Foreign investment in Japan stocks, which refers to bonds issued in a domestic market by a foreign entity in the domestic markets was also published. It came in at ¥415.2B, up from the last revised reading of ¥-358.8B.

In short, the AUDJPY look like under a bearish pressure at the moment, and it could trade below the 83.00 support area.

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