- AUD/JPY hovers around channel base support, we see further weakness on break below.
- The major has retraced brief break above 5-DMA and is extending weakness.
- Technical studies support downside in the pair. RSI nicely converging with price action.
- Weekly charts show bearish MACD line crossover on signal line which adds to bearish bias.
- Next bear target lies at 83.37 (78.6% Fib) ahead of 81.78 (June 6th lows).
- 20-DMA at 85.52 is major resistance. We see bearish invalidation only close above 86.57 (200 DMA).
Support levels - 83.37 (78.6% Fib retrace of 81.486 to 90.305 rally), 82.73 (Apr 27 low), 81.77 (May 18 low)
Resistance levels - 84.09 (5-DMA), 84.85 (61.8% Fib), 85, 85.52 (20-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-tests-channel-base-support-decisive-break-below-to-see-further-weakness-1155124) has hit TP1/2.
Recommendation: Book partial profits. Watch out for break below channel base for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -25.7769 (Neutral), while Hourly JPY Spot Index was at 96.9666 (Bullish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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