FxWirePro: AUD/JPY extends range trade for the 3rd straight session

AUD/JPY chart - Trading View 

AUD/JPY grinds sideways for the 3rd straight session, hovers around 5-DMA support.

The pair was trading 0.12% lower on the day at 84.14 at around 08:20 GMT, down from session highs at 84.46.

Aussie failed to benefit from upbeat China Caixin services PMI data. The Australian dollar stayed muted after RBA stayed pat at its monetary policy meeting.

Reserve Bank of Australia (RBA) keep the official cash rate (OCR) unadjusted at a record low of 0.10% and maintained its target of 10 basis points for yield on a 3-year Australian government bond.

In the monetary policy statement that followed, Governor Phillip Lowe said that the economic recovery is well under way, stronger than had been expected.

China's March Caixin services PMI printed at 54.3 beating expectations at 51.7 and compared to  51.5 in the prior month. 

The Composite Output Index also edged higher from 51.7 in February to 53.1 in March. A sub-index for employment also rose back into positive territory.

Major trend for the pair is bullish. However, minor trend has gone flat. Further, bearish divergence adds to the downside bias.

Price action is testing 110-EMA on the hourly charts. Break below will see dip till 200H MA at 83.85. Violation at 200H MA will see more weakness.