AUD/JPY chart - Trading View
- AUD/JPY trades 0.81% lower on the day at 78.60 at 0540 GMT, bias bearish.
- Aussie dented on poor data and dovish comments from RBA Governor Philip Lowe, while risk aversion in the stock markets keeps safe-haven bids for the Japanese yen intact.
- Data released earlier today showed Australia Q4 GDP missed estimates of 0.3% growth and expanded at 0.2% q/q.
- The annualized growth rate cooled to 2.3% from the previous quarter's print of 2.8%.
- Further, RBA's Lowe said it is difficult to see rates will rise in 2019, further fueling downside.
- Markets focus on Thursday’s Australian trade balance and retail sales data for further impetus.
- Technical studies have turned bearish. Price was rejected at 110-EMA.
- The pair has slipped below 21-EMA and is on track to test daily cloud. Bearish invalidation above 110-EMA.
Support levels - 77.76 (Jan 17 low), 77.44 (Feb 8 low), 77.23 (cloud top)
Resistance levels - 78.93 (21-EMA), 79.06 (5-DMA), 79.69 (110-EMA)
Recommendation: Good to go short on upticks, SL: 79, TP: 78/ 77.75/ 77.25
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
