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June 19, 2018 @ 11:49 +03:00
The AUDJPY pair was hammered overnight as US President Trump announced his wish to impose a further $200 Billion worth of tariffs on trade with China. The Australian economy is largely dependent on exports of raw materials to China and the AUD reacted accordingly. The price broke under trend line support at 81.314 but remains above the March low at 80.480. This is a critical level for the pair with a fall under this support extending losses towards 80.000 and 79.162. It is possible that the trend line is retested and this will determine the next move after this decline.
Resistance can be seen at 81.240 and the trend line followed by 81.952 and the 82.000 level. Of more importance is the resistance at 82.563 with the 50 DMA turning lower now at 82.893. Above the 83.000 level is horizontal resistance at 83.328 with the 100 DMA turning lower at 83.442. Again horizontal resistance can be seen at 84.000 which is the start of a band that extends up to the next highly significant level at 84.500 and also contains the 84.242. This band contains considerable strength and held price down since late February. Therefore a break above this area could result in a target of 87.000 or even 89.000.