I mentioned the AUDJPY on Monday ahead of rate decisions by both the RBA and BOJ. And although the events triggered a 95 pip surge, the gains were short-lived.
By the time the dust settled at the end of yesterday’s session the pair had carved out a bearish pin bar. You’ll recall that a daily close above the 80.20 handle was required to negate the bearish bias.
Instead, the pair closed the session at 79.65 after putting in a high of 80.62.
Here’s a look at the weekly descending channel that I pointed out on Monday:
From here traders can watch for a move lower toward the September lows near 76.15. Keep in mind that the areas near 79.00 and 78.00 could give sellers some trouble on the way down.
As long as the 80.00 handle holds on a daily closing basis, my bearish bias will remain. Keep in mind that with the Fed rate decision just 14 hours away, things could get a little bumpy over the next 24 hours.
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