- AUD/JPY halts recovery from 6-month lows at 83.32, trades 0.24% lower on day.
- The pair finds stiff resistance at 4H 55-EMA (84.85), we see further upside only on break above.
- Technical studies support weakness in the pair. RSI nicely converging with price action.
- Price has dipped below major EMAs on intraday charts and major MAs are biased lower.
- We see scope for test of channel base at 83.75. Breach there could see further weakness.
Support levels - 84.32 (5-DMA), 84, 83.75 (channel base), 83.32 (Feb 14 low)
Resistance levels - 84.68 (23.6% Fib retrace of 89.089 to 83.322 fall), 85, 85.52 (38.2% Fib)
Call update: We had advised a short call (https://www.econotimes.com/FxWirePro-AUD-JPY-tests-channel-base-support-decisive-break-below-to-see-further-weakness-1155124).
Recommendation: Bias lower. Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 8.65476 (Neutral), while Hourly JPY Spot Index was at -15.5001 (Neutral) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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