FxWirePro: AUD/JPY edges higher from 7-week lows at 78.71, bias bearish, good to stay short on upticks

AUD/JPY chart on Trading View used for analysis

• AUD/JPY hit 7-week lows at 78.71 before paring some losses to currently trade at 78.95.
   
• Aussie-Yen pairing accelerated losses in early Asian session as risk appetite remains subdued amidst roiling market sentiment.
   
• Risk-off flows are punishing the antipodeans across the board as traders flock into safe havens.
   
• Technical studies also support weakness in the pair, scope for test of major trendline support at 78.10.
   
• Price action below major moving averges and cloud. Volatility is rising and drag lower likely.
   
• We see upside only above 21-EMA at 80.02. Decisive breakout at 110-EMA negates bearish bias.

Support levels - 78.68 (Sept 7 low), 78.10 (trendline)

Resistance levels - 79.47 (5-DMA), 80.02 (21-EMA)

Recommendation: Good to stay short on upticks around 79, SL: 79.50, TP: 78.70/ 78.10

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.