FxWirePro: AUD/JPY finds stiff resistance at 1H 110-EMA, upside only on break above

Refer AUD/JPY chart on Trading View

• AUD/JPY retrace from multi-month lows at 79.70 hit stiff resistance at 1H 110-EMA.
   
• The pair has extended side ways grind after rejection at 1H 110-EMA resistance, edges lower from session highs at 80.72.
   
• Technical indicators on intraday charts are neutral, price is consolidating break above hourly cloud.
   
• 5-DMA at 80.42 is immediate support and break below will see drag till 80 (strong trendline support). Close below 80 mark could see further weakness.
   
• On the flipside, break above 1H 110-EMA finds next major resistance at 38.2% Fib at 81.06. Break above could see test of 21-EMA. Further upside only on break above.

Support levels - 80.26 (hourly cloud), 80, 79.70 (Aug 15 low)

Resistance levels - 80.65 (1H 110-EMA), 81.06 (38.2% Fib), 81.21 (1H 200 SMA)

Recommendation: Stay short on break below hourly cloud, SL: 80.65, TP: 80/ 79.70

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 60.2307 (Neutral), while Hourly JPY Spot Index was at 67.7591 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.