FxWirePro: AUD/JPY extends weakness below 20-DMA, eyes double bottom at 81.48

• AUD/JPY fails to hold break above 20-DMA, extends weakness after multiple doji formations.
   
• Price is extending weakness, trades 0.43% lower on the day, bias bearish.
   
• Demand for safe-haven Japanese yen rises on risk off sentiment weighing heavily on AUD/JPY.
   
• Turmoil in Washington on news that Trump has fired H.R. McMaster as his national security adviser keeps sentiment low.
   
• On the hourly charts, the pair has broken strong trendline support at 83.65 and now 1H 200-SMA.
   
• Scope now for test of 81.78 (June 6 low) ahead of double bottom at 81.48. Further weakness only on break below.
   
• On the flipside, we see resumption of upside only on decisive break above 21-EMA.

Support levels - 81, 81.78 (June 6 low), 81.48 (double bottom)

Resistance levels - 82.65 (61.8% Fib retrace of 81.488 to 84.527 rally), 83, 83.34 (5-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-slips-below-20-DMA-break-below-1H-200-SMA-at-8318-could-accentuate-weakness-1203763) has hit TP1.

Recommendation: Bias lower, stay short for further weakness.

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