FxWirePro: AUD/JPY rejected at trendline resistance, record Aussie job losses likely to trigger further downside

AUD/USD chart - Trading View 

AUD/JPY was extending declines for the 3rd straight session, scope for further weakness.

The pair was trading 0.45% lower on the day at 68.75 at around 05:50 GMT, after closing 0.35% lower in the previous session.

Dismal Aussie data and pessimism surrounding the US-China trade/political tussle weigh on the market’s risk-tone.

Australian economy shed a record 594.3K jobs in April, while the seasonally adjusted jobless rate rose less-than-expected to 6.2%.

US-China tension intensified after Trump ordered a Federal retirement savings fund to delay diversifying into Chinese stocks.

AUD/JPY was rejected at trendline resistance and technical indicators are poised for further weakness.

The pair is currently holding support at 21-EMA at 68.75 and break below will see dip till lower BB at 67.57.

Focus on China data dump (due Friday) and virus updates for further impetus. 

Support levels - 68.20 (50% Fib), 67.57 (lower BB), 67.46 (50-DMA)

Resistance levels - 69.30 (5-DMA), 70.17 (61.8% Fib), 70.27 (110-EMA)