13 Jan 2015
AUD/JPY might decline towards 91.80 – Westpac
FXStreet (Barcelona) - Analysts at Westpac, note that the bearish backdrop for AUD/JPY suggests that the pair might decline towards 91.80 levels in the coming 4-6 week.
Key Quotes
“AUDJPY has declined approximately 7% since peaking in November at 102.84. The 2014 top was confirmed by a bearish monthly reversal candle in December, as it was at previous tops above 102 in 2008 and 2013.”
“The 2014 top was accompanied by a negative LT momentum shift. Note that the 5 previous negative LT momentum shifts, since 2008, have pre-empted a material decline (minimum 16%).“
“This bearish backdrop highlights a minimum decline towards 91.80/00 in the coming 4-6 weeks. A weekly close below 95.85 is the next bearish trigger to watch.”
Key Quotes
“AUDJPY has declined approximately 7% since peaking in November at 102.84. The 2014 top was confirmed by a bearish monthly reversal candle in December, as it was at previous tops above 102 in 2008 and 2013.”
“The 2014 top was accompanied by a negative LT momentum shift. Note that the 5 previous negative LT momentum shifts, since 2008, have pre-empted a material decline (minimum 16%).“
“This bearish backdrop highlights a minimum decline towards 91.80/00 in the coming 4-6 weeks. A weekly close below 95.85 is the next bearish trigger to watch.”