The AUD/JPY pair continues falling and is about to reach the new lows. The attractiveness of the Yen is growing amid the declining USD, which fell after the release of the FOMC Minutes. In addition, the USD negatively reacted to the Yuan devaluation and the Chinese economy problems.

The Yen, on the other hand, was supported by statement of the Japanese Prime Minister advisor that the economy does not need any further stimulation. He also stated that effects of the sales tax increase are fading and the regulator should wait before taking more action.

AUD/JPY: pair returns to year lows

Support and resistance

Bollinger Bands on the daily chart is falling, while the price range is widening. The indicator has formed a buy signal. MACD is still moving downwards. Stochastic is in the oversold zone trying to turn horizontally, which may indicate a potential upward correction.

The indicators recommend waiting for a clearer signal before opening new positions.

Support levels: 86.93 (local high), 86.45 (August 2013 low), 86.00.

Resistance levels: 88.00 (local high), 89.33 (support level from 28 July), 89.91, 90.34, 91.07, 92.04, 92.68 (11 August high).

Source: Claws&Horns

The information provided is for educational purposes only and should not be considered as investment advice.