FxWirePro: AUD/JPY recovery lacks traction, cloud weighs on the upside, stay short

• AUD/JPY edges higher from 5-week lows at 81.13, but recovery lacks traction.
   
• Technical indicators are biased lower. RSI weak below 50 levels and Stochs are well in oversold territory.
   
• Dismal Australia retail sales data is likely to scale back the RBA tightening expectations in response to weak retail sales release.
   
• AUD/JPY trades 0.32% higher on the day, at 81.57 at the time of writing.
   
• Upside finds stiff resistance at 81.85, break above eyes cloud base at 82 levels.
   
• Price action is below major moving averages and -ve DMI dominance supports further downside.
   
• Scope for test of 61.8% Fib at 79.26. Bearish invalidation likely above 50-DMA at 82.39.

Support levels - 81.37 (50% Fib), 81, 80.50 (Mar 23 low), 79.26 (61.8% Fib)

Resistance levels - 81.85 (5-DMA), 82.39 (50-DMA), 83

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-slips-lower-on-dismal-Australia-retail-sales-data-good-to-go-short-on-rallies-1296999) has almost hit TP2.

Recommendation: Bias lower, stay short. 

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