AUDJPY – a chance to recover from declines?
The Australian dollar lost last week to most of the other currencies. There was no difference in AUDJPY. The pair went below support at 81.75 and went without a major problem to a round level of 80.00. Here we are dealing with the first upward rebound. The question is, will it continue and is it time to enter a long?
The uncertain strength of AUD
When planning your upcoming trades, you need to take into account that the Australian dollar recently lost very rapidly in value and the current upward rebound can only be a short rest for the bears. The round level of 80.00 from August well worked on this pair, not counting a few-day breakdown at the beginning of September.
If the current upward rebound is to be maintained, the target for the bulls will be the nearest resistance at 81.75. In the case of continuation of declines, you must wait for a permanent breach of 80.00. Another important support is in the area of 78.80, so only slightly over 100 pips to earn.