AUD/JPY tested yesterday a significant trend line, extending from the June 2016 lows. For the first time, the price rebounded from TL in February, and Wednesday’s dynamic falls led to another check of its significance.
Closing almost to a point at 82.30 indicates that this level actually has a technical significance. Further pressure from the bears and the overcoming of the zone will open the way towards 81.50.
In case of a much broader view, Justin Bennett is still counting on a very dynamic depreciation. He would not be surprised if the price tested even multi annual lows at 56.00 in following quarters:
Of course, traffic of such a range does not happen right away. Keeping short for the next several months is probably not the best idea. Therefore, let’s focus on D1 graph, which is shown below:
As mentioned earlier breakout of the trend line opens way to this year’s lows 81.50, then 80.30 and 78.45. Of course, if the scenario does not materialize and the quotes continue to hold above the trend line, then the resistance test 84.50 may be repeated and there we should search a chance for short.
