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FxWirePro: AUD/JPY extends weakness for the 7th straight session, further downside on charts

AUD/JPY chart - Trading View 

Technical Analysis: Bias Bearish

- The pair extends break below 110-EMA support, down for the 7th straight session

- Price action is below cloud and Chikou span is biased lower suggesting further downside

- Momentum strongly bearish as evidenced by downward sloping Stochs and RSI

- MACD shows bearish crossover on signal line and ADX supports downside

- Volatility is rising as evidenced by widening Bollinger bands

Support levels - 74.07 (23.6% Fib), 73.84 (Lower BB), 72.83 (200-DMA)

Resistance levels - 74.82 (110-EMA), 75.33 (21-EMA), 76.22 (Cloud base)

Summary: Aussie continues to underperform after RBA minutes provided the clearest sign yet that the central bank will likely cut rates further. Technical outlook for the pair is strongly bearish. Scope for dip till 200-DMA at 72.83. Bearish invalidation only above 21-EMA.

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