FxWirePro: AUD/JPY breaks 'Double Bottom' at 81.48, good to short rallies

• AUD/JPY breaks 'Double Bottom' at 81.48 raising scope for further weakness.
   
• The pair is extending break below weekly cloud, bias highly bearish.
   
• Safe-haven yen demand on heightened trade war concerns as China lashes out against US in trade wars keeps the pair subdued.
   
• Momentum indicators highly bearish. -ve DMI dominance adds to bearish bias.
   
• Bears now target 78.6% Fib retracement of 76.783 to 90.305 rally at 79.68.
   
• On the flipside, retrace and close above 'Double Bottom' at 81.48 invalidates bearish bias.

Support levels - 80.50 (session low), 80, 79.68 (78.6% Fib retracement of 76.783 to 90.305 rally)

Resistance levels - 81.48 (Double Bottom), 81.57 (5-DMA), 81.94 (61.8% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-slips-below-20-DMA-break-below-1H-200-SMA-at-8318-could-accentuate-weakness-1203763) has hit all targets.

Recommendation: Good to go short on rallies around 81, SL: 81.60, TP: 80.50/ 80/ 79.70

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -119.098 (Bearish), while Hourly JPY Spot Index was at 67.012 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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