AUD/JPY 1H Chart: Channel Down

Just recently AUD/JPY has breached the 200-hour SMA, opening the way to lower levels, such as 92.12, 91.61 and 90.98. However, we would expect the former support to withstand an initial test, considering that it is formed by the daily S1, four-hour S3 and, most importantly, by the down-trend support line that has retained the topicality since Sep 19.

According to the near-term studies, the decline is likely to extend, whereas daily indicators and the positioning of the SWFX market participants, 72% of them are long on AUD/JPY, imply a positive outlook, suggesting the bearish tendency will not last for long.