- AUD/JPY hit session lows of 76.67 after RBA cut rates by 25 bps to new lows as widely expected.
- The pair has since recovered from lows to currently trade at 77.11 levels.
- Disappointment was also seen from today's data, Australia's building approvals and trade balance came in below expectations.
- Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-breaks-below-21-DMA-good-to-go-short-on-rallies-242106) has achieved TP1&2.
- Technically, the pair is trading with a bearish bias. Scope for further downside seen.
- Price action has broken below 50-DMA (78.29) which is now stiff resistance on the upside. Bearish invalidation only on break above.
Recommendation: Book partial profits, lower stop to 78.29, stay short for 76.50/ 76
