AUD/JPY Price Analysis: Bears Push Lower as Key Support Approaches
The Australian Dollar (AUD) against the Japanese Yen (JPY) currency pair has been experiencing a downward trend in recent days, with the bears pushing the price lower as key support levels approach. As of now, the AUD/JPY pair is trading at around 75.50, down from its high of 76.80 reached earlier in the week.
Technical Analysis
From a technical perspective, the AUD/JPY pair has been trending lower since the beginning of the month. The pair broke below the 50-day moving average (MA) on March 1st and has since continued to decline. The Relative Strength Index (RSI) is also indicating that the pair is oversold, which suggests that a potential rebound may be on the horizon. However, the bears still have control of the trend, and the pair may continue to decline before any potential rebound.
One key support level to watch for is the 75.00 level. This level has acted as a significant support level in the past and could provide a potential buying opportunity for bulls. If the pair breaks below this level, it could indicate a further decline towards the 74.00 level.
Economic Factors
Economic factors have also played a role in the downward trend of the AUD/JPY pair. The Australian Dollar has been under pressure due to concerns over the economic impact of the bushfires and the coronavirus outbreak. The Reserve Bank of Australia (RBA) has also signaled that it may cut interest rates further to support the economy. Meanwhile, the Japanese Yen has been gaining strength due to safe-haven demand.
Impact on Individuals
For individuals holding AUD/JPY positions, the downward trend of the pair could result in losses if they are holding short positions. Those looking to enter long positions may want to wait for a potential rebound before doing so. It is important to keep an eye on key support and resistance levels and economic news releases that could impact the pair.
Impact on the World
The downward trend of the AUD/JPY pair could have implications for global markets. A weaker Australian Dollar could make Australian exports more competitive on the global market, which could help to boost the country’s economy. However, it could also lead to higher inflation due to the increased cost of imports. The Japanese Yen’s strength could also impact global markets, as a stronger Yen could lead to a decrease in exports and a potential slowdown in the Japanese economy.
Conclusion
In conclusion, the AUD/JPY pair has been experiencing a downward trend in recent days, with key support levels approaching. The bears have control of the trend, and the pair may continue to decline before any potential rebound. It is important for individuals holding AUD/JPY positions to keep an eye on key support and resistance levels and economic news releases that could impact the pair. The downward trend could also have implications for global markets, particularly in Australia and Japan.
- The AUD/JPY pair has been trending lower since the beginning of the month.
- Key support levels include 75.00 and 74.00.
- The pair is oversold, suggesting a potential rebound.
- Economic factors, including the bushfires and coronavirus outbreak, have contributed to the downward trend.
- The Reserve Bank of Australia has signaled further interest rate cuts.
- The Japanese Yen has been gaining strength due to safe-haven demand.
- A weaker Australian Dollar could make exports more competitive and boost the economy, but could also lead to higher inflation.
- A stronger Japanese Yen could lead to a decrease in exports and a potential slowdown in the Japanese economy.
