AUD/JPY Drops Below 79.00, Eyes May Lows
The Australian dollar is among the worst performers in the market on
Monday and is falling particularly versus the Japanese yen. AUD/JPY is losing 80 pips and continues to move closer to May lows.
The pair managed to rise to 79.75during the Asian session but then
turned again to the downside. On European hours broke below 79.00 (May
19 low) and weakened further from a technical perspective. Recently it
reached a fresh daily low at 78.77 and it was trading around 78.83/90.
Bearish pressure rising
For the third trading day in a row, AUD/JPY has been unable to trade
above 80.00 as downside pressure mounts. Price continues to move toward
78.60 (May 16 low) and below here attention would turn to 78.15/20 (May
lows).
Despite trading far from 2016, today’s daily close could be the lowest
in almost four years. The last time it ended around current levels or
lower was back in June 2012.
AUD/JPY needs to rise and held above 80.50/60 to remove some bearish
pressure. Above the next medium-term key resistance is seen around
86.50; a break higher could trigger a rally toward 90.00.
