AUD/JPY 1H Chart 9:00PM EDT 6/28/2012
The AUD/JPY has been consolidating this week so far in a rising channel seen in the 1H chart. We can also see that it has broken below this channel since the EU summit got underway during the 6/28 European session. (Risk aversion from the initial market reaction put pressure on commodity currencies like AUD, and boosted safe haven currencies like the USD and CHF.)
The 1H RSI reading has been tagged 30 and held below 60. This reflects bearish persistent bearish momentum developing. Even though AUD/JPY is still held above this week’s low of 79.27, price and momentum shows bearish bias toward breaking lower. A push above recent pivot and psychological resistance of 80 weakens this bearish outlook.
The 4H chart shows the market recently bucking June’s rally and rising channel, anchoring into a bearish development. The “channel” drawn downwards is merely a projection, not having support pivot to confirm the parallel trendlines just yet.
If the short-term bias does materialize and the AUD/JPY extends the recent fall below this week’s low of 79.27, the next key level of interest is the 77.70 support pivot. Below that we can consider June’s lows between 74.55 and 74.25.
AUD/JPY 4H Chart 9:05 PM EDT 6/28/2012
Fan Yang CMT is a trader, educator and a Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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