The AUD remains under pressure from growing unemployment and low inflation in Australia, falling commodities prices, the Chinese stock market crisis and the Yuan devaluation, and the possibility of the interest rate cut in Australia towards the end of the year. The pair AUD/JPY is supported by the interest rates difference in Japan (0.1%) and Australia (2%).
The pair is likely to remain within wide (89.50-93.45), medium (90.75-92.50) and narrow (91.00-92.00) ranges at least until the first rate hike in the US.
Support and resistance
The medium-term long positions can become viable after the breakout of the level of 93.85, while short positions – after the breakdown of the level of 89.40.
OsMA and Stochastic on the 4-hour and daily charts are turning to form a sell signal.
Support levels: 91.40 (ЕМА200 on the weekly chart), 91.00, 90.90 (ЕМА50 on the monthly chart), 90.75, 90.35, 90.00, 89.40.
Resistance levels: 92.00, 92.35, 92.75, 93.45 (Fibonacci 23.6% and ЕМА144 on the daily chart), 93.85 (ЕМА200).
While the pair remains within range, the following pending orders can be placed:
Sell Limit from the levels of 92.75, 92.35. Stop-loss at 93.10. Targets 91.00, 90.75, 90.00, 89.40.
Buy Limit from the levels of 90.35, 90.75. Stop-loss at 89.80. Targets 91.40, 92.00, 92.35, 92.75.
At present, short positions are recommended from the levels of 91.45, 91.55, 91.85 with targets at 91.20, 91.00, 90.75 and stop-loss at 92.10.