• AUDJPY reversed from resistance zone
• Further losses are likely
AUDJPY recently reversed down from the resistance zone lying between the strong resistance level 84.60 (which has been reversing the pair from February), upper daily Bollinger Band and the 50% Fibonacci retracement of the previous sharp downward impulse (C) from January.
The downward reversal from this resistance zone created the daily Japanese candlesticks reversal pattern Bearish Engulfing (the previous reversals from this resistance zone created the daily Evening Star).
AUDJPY is expected to fall further and re-test the next major support level 81.10 (which stopped the previous waves A and (2) in May).