AUDJPY has come under renewed selling pressure in recent sessions, and at the moment it is testing the 63.50 region. The price structure on the daily chart consists of lower lows beneath both the 50- and 200-day simple moving averages (SMAs), which have posted a death cross lately, with the 50-day falling below the 200-day. Thus, the outlook is firmly negative.
The RSI endorses that view, falling further in its oversold territory. Likewise, the MACD is declining in its negative territory and below its red trigger line.
If the bears stay in control and punch below the 63.50 level, the focus would then shift to the 61.00 handle, which was the low of March 2009. Even lower, the December 2008 low of 58.00 could halt the losses.
On the upside, a recovery could stall around the 67.00 zone. A bullish violation might see the 69.10 hurdle come into play to provide resistance.
In short, the picture is clearly bearish and a decisive move below 63.50 could accelerate the losses.
