FxWirePro: AUD/JPY pauses declines at channel base support (78.85), break below to see further downside

AUD/JPY chart on Trading View used for analysis

• AUD/JPY pauses declines at channel base support at 78.85, bias still bearish.
   
• Dismal Aussie employment data (Thursday) along with risk-off in markets likely to keep Aussie under pressure.
   
• The pair is consolidating previous session's slump, trades 0.14% higher on the day.
   
• Recovery attempts lack traction. Pair capped below 1H 21-EMA. Break above could see minor upside.
   
• On the flipside, break below channel base could see drag till 78.56 (Oct 26 low) and then 88.6% Fib at 78.17.

Support levels - 78.85 (channel base), 78.56 (Oct 26 low), 78.17 (88.6% Fib)

Resistance levels - 79.70 (78.6% Fib), 79.98 (5-DMA), 80.60 (61.8% Fib)

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

Recommendation: Watch out for breach at channel base support for further downside.

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