- AUD/JPY has been ranging sideways since last week's trade, capped below 50-DMA.
- We see that minor recovery attempts in the pair have failed to gather traction.
- Technical indicators still remain bearish, Stochs and RSI are sharply lower and MACD shows bearish crossover.
- Price action remains below daily Ichimoku cloud and major moving averages.
- Ongoing US-China trade war tensions continue hamper bullish attempts to push the Aussie higher.
- Commodities prices stay under pressure, further constraining the Aussie across the broader markets.
- Resumption of downside will likely see test of channel base at 80.70. Bearish invalidation above 20-DMA at 82.55.
- On the data front Australia New Home Sales and Building Permits along with BoJ policy decision will be in focus.
- The BoJ is expected to justify prolonging the current monetary easing policy this week.
- Building Permits are tentatively expected to remain steady at 0.0%, after the previous period's disappointing -3.2% contraction.
Support levels - 81.48 (Mar 5 low), 81 (May 30 low), 80.70 (channel base)
Resistance levels - 82.30 (5-DMA), 82.51 (50-DMA), 82.88 (July 25 high)
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -67.8467 (Neutral), while Hourly JPY Spot Index was at 37.4651 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
