Daily Technical Analysis - AUD/JPY, USD/CAD, EUR/AUD (1st Oct 2015)

Careful, Aussie bears! AUD/JPY might be done with its recent selloff, as the pair formed a double bottom pattern on its 1-hour time frame. It failed in its last two attempts to break below the 83.00 major psychological support level and is on its way to test the neckline at the 85.00 major psychological mark and 200 SMA. A break above this resistance level could send the pair 200 pips higher, which is the same height as the chart formation. Stochastic is nearing the oversold area, indicating that selling pressure is fading and that it might be time for Aussie bulls to charge. However, the 100 SMA is still below the longer-term 200 SMA, which suggests that the downtrend could still resume.