FxWirePro: AUD/JPY breaks below 200-DMA, more downside on cards

Chart - Courtesy Trading View 

AUD/JPY slumped over 1.60% to trade at 92.38 at around 09:30 GMT. The pair has slipped below 200-DMA raising scope for further downside. 

Poor Australia’s Retail Sales join China Covid woes and grim comments from Governor Philip Lowe to drag the pair lower.

Australia’s Retail Sales marked the first contraction of 2022, printed at 0.2% MoM for October versus the 0.4% expected expansion and 0.6% previous increase.

Coronavirus fears escalated in China, amid record-high daily infections and protests over the government’s Zero-Covid policy. 

Further, Reserve Bank of Australia (RBA) Governor Philip Lowe cited the wage-spiral risks and the housing market fears to exert more downside pressure on the pair.

Focus will be on Australia's recently initiated monthly inflation data, due Wednesday along with RBA Governor Philip Lowe and Fed Chair Jerome Powell comments.

Recovery in the pair was capped at daily cloud. Momentum is bearish and volatility is high. Close below 200-DMA will drag the pair lower. 

Next major support lies at 38.2% Fib retracement at 90.69. Bearish invalidation only above daily cloud.