Daily Forex Update: AUD/JPY

The AUD/JPY is poised to test 83.00 once again following buyers being rejected at the resistance waiting between 84.75 (R1) and 84.50 (R2). The weakness of the AUD/JPY reflects the weakening of the Australian Dollar versus the Japanese Yen. In fact, the Australian Dollar is trading lower against most major currencies thanks to a stronger U.S. Dollar pushing commodities lower; weak commodities, in turn, hurt the Aussie Dollar.

The AUD/JPY’s 240-minute chart is breaking lower through the uptrend line support of the Ascending Triangle pattern, which is formed by an uptrend line and a horizontal resistance level. The short sell trigger was 83.70 (S), but this was accompanied by very little selling momentum – we see this confirmed by Autochartist’s low Breakout reading of only a single bar.