FxWirePro: AUD/JPY hovers around channel base support at 80.80, good to short on break below

Refer AUD/JPY chart on Trading View

• AUD/JPY slumps 1.32% on the day, hits 2-month lows at 80.77, bias lower.
   
• The pair has broken below daily cloud and trades with a strong bearish bias.
   
• Price action is holding above channel base support at 80.80, break below will see further drag lower.
   
• Technical indicators are highly bearish. Stochs and RSI are sharply lower and we see DMI and MACD support downside.
   
• Next major bear target lies at 61.8% Fib at 79.26. Violation there could see further weakness.
   
• On the flipside 55-EMA is strong resistance. Decisive break above could invalidate our bearish bias.

Support levels - 80.50 (Mar low), 80, 79.26 (61.8% Fib)

Resistance levels - 81, 82.03 (5-DMA), 82.45 (55-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-Aussie-slides-on-massive-yuan-devaluation-good-to-short-AUD-JPY-on-break-below-20-DMA-1405992) has hit all targets. 

Recommendation: Watch out for break below channel base for further weakness. Target 80.50/ 80/ 79.30.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -110.332 (Bearish), while Hourly JPY Spot Index was at 93.2922 (Bullish) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.