FxWirePro: AUD/JPY breaks below 20-DMA, scope for test of 79.70, stay short

AUD/JPY chart on Trading View used for analysis

• AUD/JPY breaks below 20-DMA raising scope for further weakness.
  
• The pair is extending weakness for the 4th straight session after slipping below 55-EMA and daily cloud support.
  
• Technical indicators are bearish. Stochs have rolled over from overbought levels and RSI has turned south.
  
• MACD shows a bearish crossover on signal line and we see -ve DMI crossover on +ve DMI.
  
• Price has broken strong support at 81 mark (psychological level and 20-DMA). Dip till 79.70 now likely.

Support levels - 80, 79.70 (Aug 15 low)

Resistance levels - 81.06 (20-DMA), 81.27 (5-DMA), 81.86 (110-EMA), 82

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-slips-below-55-EMA-breach-of-81-handle-to-see-further-weakness-1438362) has hit TP1.

Recommendation: Bias lower. Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -121.105 (Bearish), while Hourly JPY Spot Index was at 83.6351 (Bullish) at 0425 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.