AUD/JPY chart on Trading View used for analysis
- AUD/JPY trades 0.45% lower on the day at 77.89 at 1000 GMT, bias bearish.
- The pair is holding support at 20-DMA at 77.72, break below to see further downside.
- Technical indicators on daily charts have turned bearish.
- RSI is below 50 and biased lower, while, Stochs are showing a rollover from overbought levels.
- Aussie is being offered in response to NAB's decision to hike home loan rates.
- Investors wary the the mortgage rate hikes by major lenders could force the RBA to cut rates this year.
- Break below 20-DMA finds little support till lower Bollinger band at 76.17.
- 21-EMA is immediate resistance at 78.34. Decisive close above could see upside till 55-EMA at 79.39.
Support levels - 77.72 (20-DMA), 76.17 (Lower BB)
Resistance levels - 78.34 (21-EMA), 79.39 (55-EMA)
Recommendation: Watch out for break below 20-DMA to go short, target 78.15.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
