AUD/JPY Pullback Takes Shape After Nine-Day Rally

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AUD/JPY Pullback Takes Shape After Nine-Day RallyAUSTRALIAN DOLLAR / JAPANESE YENFX_IDC:AUDJPYCityIndexAUD/JPY rallied 4% from its post-intervention low before momentum turned sharply lower. Tuesday’s shooting star ended a nine-day winning streak, with selling accelerating on Wednesday. I suspect USD/JPY has topped for the year, which adds to downside risks for AUD/JPY. However, continued strength in AUD/USD could limit the decline, making a clean rollover less certain. AUD/JPY is holding above a cluster of support around 112.60, including several moving averages, last week’s VPOC and the weekly pivot. A higher low on the 4-hour chart hints at a bounce, though bears may use a move towards 113 or the weekly R1 pivot to seek fresh short opportunities. MS