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FxWirePro: AUD/JPY closes below weekly cloud and 100W SMA, scope for further downside

  • AUD/JPY has closed below weekly cloud and 100W SMA in last week's trade.
     
  • Technical indicators on weekly charts are highly bearish. RSI weakness seen at 33 levels with room for further downside.
     
  • Momentum studies on weekly charts are heavily bearish and we see -ve DMI dominance and MACD supports trend lower.
     
  • Price is holding minor support at Apr 19 lows at 81.49, break below will see further downside.
     
  • Next major support on the downside is seen at 79.26 (61.8% Fib retrace of 72.437 to 90.305 rally).
     
  • Immediate resistance is seen at 82.40 (trendline), retrace and close above could see minor upside. Breakout above 20-DMA invalidates bearish bias.

Support levels - 81.49 (Apr 19 low), 81.37 (50% Fib retrace of 72.437 to 90.305 rally), 79.26 (61.8% Fib)

Resistance levels - 82, 82.40 (trendline), 82.50 (5-DMA), 83

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-edges-higher-from-8-month-lows-at-8230-bias-bearish-1176872) has hit TP1/2.

Recommendation: Book partial profits, hold for further downside.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

 

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