FxWirePro: AUD/JPY fades initial gains, outlook bearish below 200-DMA
AUD/JPY chart - Trading View
AUD/JPY erased early gains, slipped lower from session highs at 81.04 and was trading largely muted at 80.74 at around 11:00 GMT.
The pair is set to extend previous session's massive slump, after retracing below 200-DMA.
Earlier on Wednesday, the data published by the Australian Bureau of Statistics showed that the Consumer Price Index (CPI) rose to 0.8% in Q2 from 0.6%, slightly higher than expectation of 0.7%.
Additionally, the Reserve Bank of Australia's (RBA) Trimmed Mean CPI increased to 1.6% on a yearly basis in Q2 and matched analysts' estimates.
AUD/JPY grinds lower as rising risk off keeps safe haven demand for the yen. Retrace below 200-DMA raises scope for further downside.
Momentum is bearish and volatility is high. The pair is on track for further downside. Next major support lies at 50-week MA at 80.33.
5-DMA is immediate resistance at 81.01. Bearish invalidation only above 200-DMA.