Sentiment has worsened notably over the previous days; sending JPY crosses and AUDJPY was no exception.

There was no macro news today, but traders focused on rising US yields and the overall sentiment in the stock markets, which was rather negative after yesterday’s massive bearish reversal.

At the time of writing, AUDJPY was down more than 0.5%, falling to one-month lows below 82.00.

Worse still, the price has declined below both the 50 and 200-day moving averages, turning immediate to bearish. The following support could be at previous highs at around 81.50, and it might be tested later in the day.

On the other hand, the intraday resistance will likely be at the 50-day average near 82.15 (the purple line), while the significant selling area will surely be at the 200-day average at 82.50 (the green line).

Volatility is expected to be elevated as option expiries in the US usually lead to significant market movements. 

14:40, 21 Jan 2022

Source: https://www.axiory.com/analytics/technical-analysis/audjpy-falls-below-essential-support

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About Author

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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