Cross-rate signals: AUD/JPY forms a double top

The AUD/JPY cross-rate significantly weakened on the general strengthening of the Japanese currency, but unlike most other crosses, the AUD/JPY pair is not oversold at the older timeframes, which will allow it to decline. In addition, this pair forms a figure “double top”, which in the future can serve as a signal to resume decline.

Thus, consolidation of AUD/JPY below support of 82.50-40 will open the way for sellers to support levels: 82.00 and 81.60. Resistance marks are: 82.90-83.00 and 83.40, the breakout of which will cancel the expectation of a decline.

Fig. AUD/JPY. Current price – 82.60

Hanzenko Anton