FxWirePro: AUD/JPY breaks below major trendline support at 82.65, good to go short on rallies

• AUD/JPY has breached major trendline support at 82.65 raising scope for further downside.
   
• Aussie dented after China Caixin manufacturing PMI dipped into contraction territory in May, widely missing forecasts.
   
• China's Caixin manufacturing PMI for May arrived at 49.6 vs 50.1 expected and 50.3 last, slipping into contraction on slower increases in output and new orders.
   
• Traders brush aside upbeat Australia retails sales data which rebounded 1% in April, which is way above the consensus estimate of 0.3%.
   
• The pair is extending downside after below 200-DMA. Technical studies are bearish.

Support levels - 82.16 (38.2 % Fib of 72.43 to 88.17 rise), 81.77 (May 18 low), 81.48 (Apr 19 low)

Resistance levels - 82.56 (5-DMA), 82.89 (200-DMA), 83.28 (20-DMA)

Recommendation: Good to go short on rallies around 82.20/30, SL: 83, TP: 81.75/ 81.50/ 81

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -62.7975 (Neutral), while Hourly JPY Spot Index was at 12.7389 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.