AUD/JPY Snaps Back to Preserves December Range
After failing to clear the opening range for March, AUD/JPY broke down from a near-term holding pattern, with the pair slipping to a fresh 2017 low of 83.82.
Indeed, the near-term shift in risk sentiment may continue to drag on the aussie-yen exchange rate, with the pair largely capped by the Fibonacci overlap around 87.70 (61.8% expansion) to 88.20 (38.2% expansion), but the lack of momentum to test the December low (83.74) may foster range-bound conditions over the coming days especially as the Relative Strength Index (RSI) highlights a similar behavior.
The broader outlook for the aussie-yen exchange rate remains constructive as price & the RSI preserve the bullish trends carried over from 2016, and the oscillator appears to be foreshadowing a near-term exhaustion as it struggles to push into oversold territory. With that said, a closing price above the 85.00 handle (100% expansion) may foster a move back towards the former-support zone around 86.10 (38.2% retracement) to 86.50 (23.6% expansion).
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--- Written by David Song, Currency Analyst
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