AUD/JPY Slammed Below 79.00 Level
The Australian Dollar fell across the board after the release of RBA
Quarterly Statement on Monetary Policy that showed central bank's
readiness to cut interest rates further. Immediately after the release,
the AUD/JPY pair dropped to its lowest level since Feb.
Moreover, risk-off sentiment across global financial markets continued to support the safe-haven demand for JPY. Friday's sharp fall confirms a decisive break down below 80.00 psychological mark. The pair dropped below 79.00 mark to 78.70 but is currently trading off day's through at 78.95.
Even from technical perspective, the pair has given a break-out from a four-month broad trading range and hence, seems vulnerable to extend its downfall in the near-term.
Technical levels to watch
From current levels, the pair seems to extend its weakening trend towards testing its Feb. low level support near 77.60-55 area. The broader picture suggests that the pair might continue drifting lower towards testing its next major support near 76.00 area in the near-term.
On the upside, recent lows support near 79.50 area now seems to act as immediate resistance. Even if the pair manages to move back above this immediate resistance, any further up-move might now be capped at the very important psychological mark support break-point turned immediate strong resistance at 80.00 handle.