AUD/JPY Shows Losses

AUD/JPY on the daily timeframe shows a fourth day of consecutive losses as bears seem to be taking advantage by high volume and high volatility. Price has recently printed a higher high and has come back for a retracement (HL), this started from the bearish engulfing that formed last week.

Price has currently made its way back to the daily 20EMA, where we are seeing slight buying pressure, with today's daily close. We will be watching to see how today's daily candle closes and to see if price breaks the daily high tomorrow.

If not, we can expect price to reach the 200SMA below 87.50 and react on it. No news are scheduled for today on both sides which implies that we are in for a technical trading day. Having in mind the previous high volatility, uncertainty remains the prevailing market environment in current time.

Chart: AUD/JPY D1