FxWirePro: AUD/JPY capped at 5-DMA, risk aversion keeps upside limited

AUD/JPY chart - Trading View 

• AUD/JPY edges lower from session highs at 78.48 and is currently trading at 78.36 at 1100 GMT.
   
• Upside is capped at a downward sloping 5-DMA which is currently at 78.54.
   
• Also, no breakthrough between US/China trade talks keeps the antipodeans depressed.
   
• While on the otherside, risk-aversion in the markets keeps safe haven demand for the yen.
   
• The major is ranging sideways since Jan 2019, between 79.84 and 77.44. Breakout of channel will provide clear directional bias.
   
• Technical bias is slightly bearish. We see bearish 5-DMA crossover on 21-EMA.
   
• We see scope for dip till daily cloud. Break below cloud will accentuate downside.
   
• Immediate resistance is at 5-DMA. Bearish invalidation likely above 110-EMA.

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