A fall continuation is likely.

On the 4-hour chart, the price fell below the level of 88.50 (50% Fibonacci correction). At present, the key level seems to be at 88.05 (61.8% correction), a breakdown of which could allow the price to fall to 87.76 (38.2% correction for the medium term trend) and 87.00. If the price cannot overcome the level of 88.05, the pair will grow along the 38.2% arc or the 61.8% Fibonacci fan line towards the level of 88.50, a breakout of which would allow it to grow to 88.96 (38.2% correction) and 89.52 (23.6% correction). On the daily chart, the price is also heading to the levels of 87.76 and 87.00, from where it can reverse up.

Trading tips

Short positions can be opened below the level of 88.05 with targets at 87.76, 87.00 and stop-loss at 88.30.

Alternative scenario

Long positions can be opened after the breakout of the level of 88.50 with targets at 88.96, 89.52 and stop-loss at 88.20.

AUD/JPY: Fibonacci analysis

AUD/JPY: Fibonacci analysis

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