FxWirePro: AUD/JPY pauses downside at strong trendline support at 81.10, break below to accentuate weakness

• AUD/JPY slumps over 1% on the day as escalating US-China trade wars fears dent the major.
   
• Aussie unable to benefit from upbeat RBA minutes, while safe haven JPY is solid bid as US and China appear increasingly headed towards a full-fledged trade war.
   
• U.S. President Donald Trump threatened on Monday to impose a 10 percent tariff on $200 billion of Chinese goods.
   
• Technical indicators are heavily bearish. Scope for accelerated downside on break below 81.10.
   
• Momentum with the bears, RSI below 50, bias lower, MACD shows bearish crossover, -ve DMI dominance adds to bearish bias.
   
• Next major bear target lies at 79.26 (61.8% Fib retracement of 72.437 to 90.305 rally).
   
• On the flipside, retrace above daily cloud invalidates bearish bias. 

Support levels - 81, 80.50 (Mar 23 low), 80.30 (trendline), 80, 79.26 (61.8% Fib retracement of 72.437 to 90.305 rally)

Resistance levels - 81.81 (1H 21-EMA), 82, 82.37 (5-DMA)

Recommendation: Stay short on break below 81.10, SL: 81.85, TP: 80.50/ 80.30/ 80

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -111.096 (Bearsih), while Hourly JPY Spot Index was at 172.924 (Bullish) at 0445 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.