The AUDJPY has fallen quite dramatically over the week on the back of fading risk sentiment, and may slide further as the flight to safety continues.
Currency Pair: AUD/JPY Chart: 30 Min Charts Short-Term Bias: Short
Analysis Update
The AUDJPY triggered an oversold RSI signal during the overnight Asia session as the pair dropped to an intraday low of 64.66, but has bounced higher to hold above 65.00. Volatility for the aussie-yen has tapered somewhat over the past few hours, but I expect the downward momentum to drag the pair lower over the remainder of the trading session. I anticipate the pair to end the day near its intraday low, and we may see the underlying downward trend lead the AUDJPY towards the 10/29/01 low of 61.22 over the following week. Meanwhile, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
The AUDJPY has fallen quite dramatically over the week on the back of fading risk sentiment, and may slide further as the flight to safety continues. Just this week, the pair has slipped 1500+ points to break below major support levels, and we have not seen the pair at this level since 2002. Meanwhile, the huge downturn has triggered numerous oversold RSI signals on its way to the downside, but we have yet to see any signs of a correction, which has favored a bearish outlook for the pair in the near-term. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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