- AUD/JPY trades 0.28% lower on the day, hovers around 82 handle.
- The pair trades with a bearish momentum, Stochs well in the oversold zone. RSI shows weakness below 50 levels and is biased lower.
- Price action is below major moving averages and daily cloud weighs heavily on the upside.
- The major has broken strong trendline support at 82.20, bias lower.
- We see scope for test of 80.50 (March 23 lows) and break below will see further weakness.
- On the flipside, 21-EMA at 82.50 is major resistance, bearish invalidation only on break above.
Support levels - 81.75 (May 3 low), 81.25 (Mar 19 low), 80.50 (Mar 23 low)
Resistance levels - 82, 82.50 (21-EMA), 83 (55-EMA)
Recommendation: Good to go short on rallies around 82.50, SL: 84, TP: 81.75/ 81.25
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