FxWirePro: AUD/JPY finds strong support at 200-DMA, break below required for further downside

AUD/JPY chart - Trading View 

Technical Analysis: Bias Bearish

- GMMA indicator shows major trend is turning bearish while minor trend is strongly bearish

- Price action is below major EMAs and 5-DMA is sharply lower and caps recovery

- Momentum is strongly bearish, MACD and ADX support weakness

- Back-to-back Dojis at lows suggest resistance of bears to drive prices lower.

- Oscillators are at oversold which may cause some upticks, however, pullbacks likely to be shallow

Support levels - 72.78 (200-DMA), 72, 71.35 (38.2% Fib)

Resistance levels - 73.71 (5-DMA), 74.57 (21-EMA), 74.71 (110-EMA)

Summary: AUD/JPY is extending sideways grind above major 200-DMA support, and we see further weakness only on decisive break below. Focus now on RBA policy meet (Tuesday). Markets have priced in a rate cut to a record low of 0.1%. Any dovish surprise in the statement that follows may knock the Aussie lower. Watch out for break below 200-DMA for further downside. Next major support lies at 38.2% Fib at 71.35.