FxWirePro: AUD/JPY slumps on renewed bout of risk-aversion, breaks below 50-DMA at 82.43, bias lower

• AUD/JPY slumps to 3-week low on renewed bout of risk-aversion, trades 0.59% lower on the day.
   
• The pair has shown a decisive break below 50-DMA at 82.43 and is extending weakness for the 6th straight session.
   
• Italian political crisis drives risk-aversion across markets as traders react negatively to the unfolding political drama.
   
• Technical indicators are biased lower. Stochs and RSI point south and we see bearish MACD line crossover on signal line.
   
• The pair has paused downside at 61.8% Fib. Next major bear target lies at 78.6% Fib at 81.35 ahead of 81.13 (May 8th and 9th low).
   
• On the flipside, 50-DMA has now turned to be immediate strong resistance. Retrace above could see some upside.

Support levels - 82.02 (61.8% Fib), 81.35 (78.6% Fib), 81.13 (May 8th and 9th low), 81

Resistance levels - 82.43 (50-DMA), 82.66 (5-DMA), 83

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-pauses-downside-at-50-DMA-support-further-weakness-only-on-break-below-1332669) has hit TP1.

Recommendation: Book partial profits, stay short for further weakness.

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