FxWirePro: AUD/JPY Daily Outlook

AUD/JPY chart - Trading View 

Spot Analysis:

AUD/JPY was trading 0.59% lower on the day at 83.16 at around 13:05 GMT

Previous Week's High/ Low: 84.25/ 82.13

Previous Session's High/ Low: 84.16/ 83.59

Fundamental Overview:

Deteriorating coronavirus (COVID-19) conditions in Australia called for fresh restrictions in major parts, denting the Aussie across the board.

Falling iron ore prices, Australia’s biggest export earner, also weighed on the pair, dragging it lower.

Technical Analysis:

AUD/JPY recovery rejected at daily cloud 

The pair has slipped below 5-DMA, hovers around 110-EMA support

Bearish divergence adds to the downside pressure

RSI has slipped below 50 mark and momentum has turned bearish

Support levels - 83.04 (110-EMA), 82.81 (23.6% Fib), 82.28 (Lower W BB)

Resistance levels - 83.52 (200H MA), 83.77 (5-DMA), 84.00 (55-EMA)

Summary: AUD/JPY hovers around 110-EMA support, break below will see more downside. Next major bear target lies at 38.2% Fib at 80.96.