AUDJPY has rebounded from the 5¼-year low of 72.41 it touched a week ago to around 76.70 today. However, prices remain significantly below the Ichimoku cloud and the 200-day moving average, underlining the medium-term bearish outlook.
In the near-term, the stochastics point to a weak upside momentum following the partial rebound seen over the past three days. The converged tenkan-sen and kijun-sen lines are currently capping further gains by providing resistance at around the 77 level. Should the upside momentum strengthen, resistance is likely to come from the 20-day moving average at around 78.
To the downside, a drop below 74.50 would likely shift to bias back to negative, while a drop below the June 24 low of 72.41 would signal a resumption of the longer-term downtrend that began in late 2014.
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