FxWirePro: AUD/JPY hovers around channel base, break below to accentuate weakness

• AUD/JPY hovers around channel base support, we see further weakness on break below.
   
• The major has retraced brief break above 5-DMA and is extending weakness.
   
• Technical studies support downside in the pair. RSI nicely converging with price action.
   
• Weekly charts show bearish MACD line crossover on signal line which adds to bearish bias.
   
• Next bear target lies at 83.37 (78.6% Fib) ahead of 81.78 (June 6th lows).
   
• 20-DMA at 85.52 is major resistance. We see bearish invalidation only close above 86.57 (200 DMA).

Support levels - 83.37 (78.6% Fib retrace of 81.486 to 90.305 rally), 82.73 (Apr 27 low), 81.77 (May 18 low)

Resistance levels - 84.09 (5-DMA), 84.85 (61.8% Fib), 85, 85.52 (20-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-tests-channel-base-support-decisive-break-below-to-see-further-weakness-1155124) has hit TP1/2.

Recommendation: Book partial profits. Watch out for break below channel base for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -25.7769 (Neutral), while Hourly JPY Spot Index was at 96.9666 (Bullish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest