FxWirePro: AUD/JPY finds minor trendline support at 79.50, break below to see resumption of weakness

AUD/JPY chart on Trading View used for analysis

• AUD/JPY remains on a strong bear trend, Aussie bears stay firmly in the drivers’ seat.
   
• Aussie dented by dismal Australia retail sales reading. Australia retail sales growth stalled m/m in August, missing forecasts at 0.3 percent. 
   
• Escalating tensions with China over ban Huawei mobile phones to add to the downside pressure. 
   
• Souring risk sentiment in the emerging markets and commodity space will further exacerbate the Aussies declines.
   
• Technical indicators on daily charts are bearish. Stochs and RSI biased lower and MACD shows bearish crossover on signal line.
   
• AUD/JPY has broken below 80 mark, and is currently holding minor trendline support at 79.50.
   
• Break below will drag the pair lower. Test of 61.8% Fib at 79.26 then likely.
   
• On the flipside, 50-DMA is major resistance, we see upside only on break above.

Support levels - 79.50 (Trendline support), 79.26 (61.8% Fib), 79

Resistance levels - 80.68 (5-DMA), 81.11 (21-EMA), 81.82 (50-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-Technical-Outlook-1422622) is approaching final targets.

Recommendation: Book partial profits at lows. Watchout for break below 79.50 for further weakness. 

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -56.8441 (Neutral), while Hourly JPY Spot Index was at 94.0197 (Bullish) at 0445 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.