The AUD/JPY created a Doji candle, signaling the corrective rally from the March 5 low of 81.49 has run out of steam around 84.38 (38.2 percent Fibonacci retracement of 89.07-81.49). Read on to see how the pair trades currently on the 14 March AUDJPY Technical Forecast.
14 March, GKFX – A negative follow-through today (preferably a close below previous day’s low of 83.54) would confirm bearish Doji reversal, meaning the corrective rally has ended and the bears have regained control.
China data has failed to put a bid under the Aussie dollar
The action in the related markets does indicate scope for a drop below 83.54. For instance, the S&P 500 futures are reporting 0.20 percent drop. Further, China may react strongly to talk of wider US tariffs, thus boosting fears of a full-blown trade war. So, the Japanese Yen will likely remain well bid. Also, the better-than-expected China industrial production data released a few minutes ago has not had a positive impact on the Aussie dollar.
That said, the pair may revisit 84.38 (38.2 percent Fibonacci retracement) and could possibly break higher if the equities put on a good show. Such a move would signal a short-term bearish-to-bullish trend change.
14 March AUDJPY Technical Forecast
As of writing, the pair is trading at 84.83. A close above 84.38 (38.2% Fibonacci retracement) would open doors for a sustained rally to 85.60 (Feb. 13 high) and 85.84 (descending 50-day moving average). On the downside, a close below 83.32 could yield re-test of 82.50 (March 8 low) and 82.02 (March 7 low).
This article 14 March AUDJPY Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.