AUD/JPY Price Analysis: Hovering above a key support area
- AUD/JPY has reached a key support area at 90.20/40.
- The activation of potential H&S formation might send the pair to 84.00 or lower.
The Australian dollar has been going through a steady downward trend against the Japanese yen over the last weeks, weighed by the negative market sentiment.
The Aussie dollar has now reached an important support area at 91.29/40 area, which contained bears in late May and early June and also prompted the recovery from the August 2 low.
In this case, the mentioned area corresponds with the neckline of a potential Head & Shoulders figure (as shown in the following daily chart), which might send the pair down to the 84.00 area.
On the upside, a successful breach of the 94.60 resistance area (October 4,6 highs) would ease downside pressure and probably increase bullish momentum to aim for 96.45 (September 20, 22 highs) before retesting September’s peak at 98.60.
AUD/JPY Daily Chart
Technical levels to watch
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