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Fan Yang

AUD/JPY Technical Analysis 4/6 - Key Support Just Below

The AUD/JPY has been in a bearish correction since it tagged 88.00 in February. I think we should anticipate the market to buy on this dip. 

AUD/JPY Daily Chart

(click to enlarge)

Bullish Breakout:
- First, let's note that there was a bullish breakout in the second half of 2016. 
- The AUD/JPY broke above a falling trendline coming down from a high of 102.84 back in late 2014. 
- Price also broke above the 200- and 100-day simple moving averages (SMAs).
- Furthermore, price pushed above a key resistance area around 86.50. 
- Because the bullish breakout signals a possible bullish reversal against the downtrend from 102.84 to 72.44, we should anticipate buying on the current dip. 

Support:
- Price is already at a minor support pivot around 83.15. We are indeed seeing some buying here this week.
- However, Japanese Yen strength has been pervasive so I want to anticipate some further downside. 
- I think the 81-82.00 area will be a strong buying area.
- There is the 200-day SMA, a rising trendline and a previous support/resistance pivot in this area.
- I think in 2017, there is upside risk towards 90, which is around another key support/resistance area.

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