AUD/JPY recently turned south and now is testing a key support area between 83.00 and 83.10. The pair is still above its upside support line, drawn from the low of 28th of June. Looking at the bigger picture, we remain positive, where we could aim for the recent highs again. But for the short run, if the fall continues, we will have to shift our near-term outlook to a more negative one.
For now, we will continue to monitor the abovementioned area. For us to become confident with the downside scenario, a clear close below the 83.00 mark could send AUD/JPY towards the next potential area of support at 82.70. If this level is not able to withhold the rate from dropping further, then eventually we could see a test of the aforementioned upside support line. Not far from there lies another key area of support at the 82.40 hurdle, a break of which could bring in even more bears and AUD/JPY could start dropping even further.
Alternatively, if we see a strong reversal back up to the 83.50 zone, a clear move and a close above it could attract more bulls to join in the action. Slightly above lies the key area of resistance at 83.70, marked by the Monday high. A further acceleration of the rate could open the path towards the 84.00 zone, or even the 84.15 mark.
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