Key Highlights
· Aussie dollar tumbled against the Japanese yen, and it looks like it may continue to face offers.
· There was a bullish trend line formed on the 4-hour chart of the AUD/JPY pair, which was broken recently to open the doors for more losses.
· Today, in Australia, the trade balance released by the Australian Bureau of Statistics posted a trade deficit of -3,410M in Feb 2016, compared with the forecast of a -2,600M trade deficit.
· Later today, the RBA Interest Rate Decision will be announced by the Reserve Bank of Australia, in which the central bank is likely to keep the rates unchanged at 2%.
AUD/JPY Technical Analysis
The Australian dollar faced a lot of bearish pressure lately against the Japanese yen for two reasons. First, the Aussie dollar weakened, and second, the Japanese yen gained heavily against most peers. So, it was a double assault for the AUD/JPY pair.
There was also a major support and a bullish trend line formed on the 4-hour chart of the AUD/JPY pair, which was broken to clear the way for the bears in the near-term.
On the downside, the next support area can be around the 200 simple moving average on the 4-hour chart, which may play an important role.