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AUDJPY: Potential break of downward channel

Since the start of the year the currency lost 8.0% but last week rose more than 0.5% and is in an accumulation phase since the end of October.

Last week the AUDJPY went back and forward without any clear direction but managed to close in the green although in the middle of the daily range, in addition closed within the previous week range, which suggests being clearly neutral, neither side is showing control.

Stochastic is showing bullish momentum and is above the 50 mid line.

Expecting an upward move to a key level at 83.400 on a break above 50 week moving average at 80.790 (scenario 1) and a bounce from the key level at 83.400 could push the currency pair down to another key level at 79.124 (scenario 2).