FxWirePro: AUD/JPY fails to hold above 81 handle, risk-off action in Asian equities dents sentiment around the Aussie

AUD/JPY chart on Trading View used for analysis

• AUD/JPY consolidates break below trendline support at 81, bias remains bearish.
   
• The RBA meeting minutes offered little impetus. The board agreed that the next move is more likely to be an increase but also believed there is no strong case for a near-term adjustment in monetary policy.
   
• Further, risk-off action in Asian equities dents sentiment around the Aussie. 
   
• All the major Asian indices were trading in the red. Japan’s Nikkei was trading 1.21 pct lower at 21,181.50 points. Australia’s S&P/ASX 200 was trading 0.91 pct lower at 5,608.40 points.
   
• Technical analysis supports bearish bias for the pair. Price action below major moving averages.
   
• Recovery attempts capped below 55-EMA. The pair has failed to hold break above 81 handle, has formed a Doji at lows.
   
• The pair is currently holding support at daily cloud. Break below will see drag lower. 

Support levels - 80.72 (Dec 10 low), 79.70 (Aug 15 low)

Resistance levels - 81.29 (50-DMA), 81.80 (200-DMA), 82

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-Trade-Idea-1473953) has hit TP1.

Recommendation: Bias lower, stay short.

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