Yesterday, the AUD/JPY pair fell sharply to a low of 87.91 before closing at 88.21. You may want to be informed about how is it currently trading. Read on and get updated on the 24 January AUDJPY Technical Forecast.
24 January, GKFX – Having faced rejection at 89.00 levels for the fifth straight day, the AUD/JPY pair fell sharply to a low of 87.91 yesterday before closing at 88.21.
- Downside exposed after bearish outside day candle.
- Upbeat Japanese data favors break below key Fib level.
Yesterday’s bearish outside day candle (yesterday’s high and low engulfed the previous four daily candle’s high and low) suggests the short-term top could be in place above 89.00 levels. That said, the pair is still holding above 87.91 (previous day’s low) and 87.97 (23.6% Fib R of Nov low – Jan high).
However, the Fibonacci support could be breached soon, courtesy of upbeat Japanese data released today. The flash manufacturing PMI showed the output neared 4-year high in December and the Ministry of Finance reported a 9.3 percent year-on-year rise in Japanese exports in December.
The data sets show Japanese economy is firing on all cylinders and hence puts a question mark on the need to keep monetary policy accommodative. Thus, the Yen may find fresh bids and push AUD/JPY below 87.97 (23.6% Fib R of Nov low – Jan high).
24 January AUDJPY Technical Forecast
Currently, the pair is trading at 88.17 levels. A break below 87.91 (previous day’s low) could yield 87.63 (Jan. 2 low) and 87.32 (100-day MA). On the other hand, a move above 88.30 (10-day MA) would expose resistance at 88.61 (1-hour 100-MA) and 89.00 (psychological levels).
This article 24 January USDJPY Fundamental Outlook 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.
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