- The pickup in risk aversion providing extra support to the safe haven JPY.
- AUD/JPY edged higher on early Thursday's trade on the back of Australian jobs data-led gains.
- The pair retraced dip below 200-DMA at 82.60, but upside seems to lack traction.
- Upside was rejected at 83 handle, the pair has slipped below 200-DMA at 82.60 and major trendline support at 82.35.
- Technical studies are biased lower, close below trendline support will see drag lower.
- Scope then for test of 81.53 (April 20 low) and then 80.30 (50% Fib of 72.43 to 88.17 rise).
Support levels - 81.53 (April 20 low), 81, 80.30 (50% Fib of 72.43 to 88.17 rise)
Resistance levels - 82.60 (200-DMA), 83, 83.32 (5-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-rejected-at-50-DMA-retrace-upto-trendline-support-at-8250-likely-706594) has hit all targets.
Recommendation: Book partial profits at lows. Lower trailing stop to 83.50. Hold for 81.53/ 81/ 80.30
Fresh shorts recommended on close below 82.35, SL: 83, TP: 82/ 81.53/ 81/ 80.30
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 6.24048 (Neutral), while Hourly JPY Spot Index was at 83.9531 (Bullish) at 0920 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
