Technical Analysis

AUD/JPY gives up half the September gains

AUD/JPY technical analysis

AUD/JPY had a nice run from September 7 to September 26 as it climbed to 82.50 from 78.69. However at the top it stalled and then this week formed a double top.

That has kicked off a reversal that sent the pair down to 80.50. The drop incudes an 82 pip decline today to 80.51, which is just below the 50% retracement of the rally.

In the bigger picture, the Sept rally was against the longer-term downtrend. The Sept low had been the worst level since 2016.

Watch for more risk aversion and selling in the day ahead. The technical level to eye is the 61.8% retracement at 80.14.

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