By: Mike Kulej
The Australian Dollar has been slipping against the USD recently. Perhaps not as much as other currencies, but the selloff has been noticeable and steady. It is possible that some of the AUD crosses will experience corrections as well, at least in the short term.
One of them is the AUD-JPY. This pair avoided sharp fluctuations, which plagued currencies during the last few days, and maintained its uptrend. Until Friday, that is, when it spent most of the day trending sideways, before a move down took it through the 82.90 support, indicating the likely short-term direction.
On the hourly chart, the AUD-JPY formed a possible topping pattern, with the price moving under the 100 SMA. Enough data points have been established to draw a new down trendline. During the last hour of trading, this trendline was tested and held, making it more important now. The new short-term bearish direction is valid for as long as the trendline remains unbroken.
The MACD is also bearish, staying under the zero line. However, the ADX should rise in order to support the new trend. If we see the price dropping again, combined with an increased reading in this indicator, chances are high that the AUD-JPY could test the next support at 82.15 within 1-2 days.
AUD-JPY Could Test 82.15 in Near Term
DailyForex.com