AUD/JPY Price Analysis: Breaks weekly support on RBA’s move, 85.10 in focus
- AUD/JPY slumps around 60 pips as RBA rejects YCC moves.
- A fortnight-old ascending triangle in focus, 86.10 holds the gate for buyers.
- Descending RSI, break of immediate support favor sellers.
AUD/JPY portrays a 60-pip fall to mid-85.00s on the Reserve Bank of Australia’s (RBA) moves during early Tuesday.
Read: RBA: Will not hike OCR until actual inflation is sustainably within the 2 to 3% target range
The pair refreshed intraday low to 85.28 on breaking the weekly support line, now resistance around 85.55, before the recent rebound to 85.45, down 0.40% intraday by the press time.
In addition to the weekly trend line break, downward sloping RSI and cautious mood in the market also weigh on the AUD/JPY prices. However, a clear break of 85.10 becomes necessary to confirm the ascending triangle bearish chart pattern.
Following that, the quote can extend the latest south-run towards an ascending support line from late September, around 83.50. During the fall, the 100-SMA level of 84.84 may act as a buffer.
Meanwhile, the cross-currency pair’s corrective pullback beyond the previous support line near 85.55 will need validation from the stated triangle’s resistance, at 86.10, to recall the AUD/JPY bulls.
To sum up, AUD/JPY sellers have knocked on the door but 85.10 serves as entry passes.
AUD/JPY: Four-hour chart
Trend: Further weakness expected