FxWirePro: AUD/JPY rebounds from new 11-year low (59.86) after Lowe's speech, 'Hammer' raises scope for upside

AUD/JPY chart - Trading View 

AUD/JPY has pared some losses after hitting new 11-year low at 59.86 and was trading at 62.11 at around 08:00 GMT.

Aussie extends bounce across the board after RBA’s Governor Philip Lowe's speech.

At his speech, Lowe stressed that interest rates are expected to remain at current levels for some years.

He added that he expects “significant job losses” and opened the door to intervening in the FX market.

AUD/JPY has formed a 'Hammer' pattern on the daily candle at the time of writing raising scope for upside.

Technical studies support further weakness in the pair, further downside in the pair looks imminent.

That said, break above 55H EMA (63.33) can see further upside. Gains till 200H MA (66.05) likely.

Immediate support is seen at 62.271 (July 2002 low). Test of 58 level likely on downside resumption. 

Support levels - 62.271 (July 2002 low), 60.66 (May 2000 low)

Resistance levels - 63.33 (55H EMA), 66.05 (200H MA)