AUD/JPY chart on Trading View used for analysis
- AUD/JPY trades 0.55% lower on the day at 76.84 at the time of writing.
- The pair is extending weakness for the 4th straight session, bias strongly bearish.
- Risk-off sentiment keeps bias lower. Concerns about global economic slowdown, partial US shutdown, US-China trade war fears and the slump in global equities keep traders sidelined.
- Technical studies also support weakness. Price action below major moving averages.
- The pair is holding minor support at 76.78, break below to see drag lower.
- Next major bear target lies at 88.6% Fib at 74.47. Close above immediate resistance at 5-DMA ato see upside till 21-EMA at 79.56.
Support levels - 76.78 (Nov 7 low), 75.96 (Sept 2016 low), 74.47 (88.6% Fib)
Resistance levels - 77.69 (5-DMA), 79.55 (21-EMA), 81.63 (200-DMA)
Recommendation: Stay short on break below 76.78, SL: 77.75, TP: 76/ 75/ 74.50
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
