FxWirePro: AUD/JPY recovery rejected at 200-DMA, on track to test 50% Fib

AUD/JPY chart - Trading View 

AUD/JPY extends weakness for the 3rd straight session, trades 0.66% lower at 80.22 at around 09:55 GMT.

Aussie dampened after dismal China data, drags the pair lower. China's factory output and retail sales growth slowed sharply and missed expectations in July. 

On the other side, Japan's industrial production increased more than initially estimated in June, data from the Ministry of Economy, Trade and Industry said on Monday.

Japan Industrial Production accelerated 23.0 percent YoY in June, above expectations at 22.6%. 

On a monthly basis, Industrial Production rose a seasonally adjusted 6.5 percent, beating forecasts at 6.2 percent.

Capacity utilization grew 6.2 percent monthly in June and gained 30.3 percent from a year ago.

AUD/JPY trades with a bearish bias. Recovery attempts were rejected at 200-DMA. RSI converges with price action.

Support levels - 79.47 (50% Fib), 78.97 (110-week EMA), 78.61 (200-week MA)

Resistance levels - 80.40 (55-week EMA), 80.91 (converged 5 and 20 DMA), 81.13 (21-EMA)

Summary: AUD/JPY resumes downside after rejection at 200-DMA, scope for further downside. The pair is on track to test 50% Fib retracement at 79.47. Bearish invalidation only above 200-DMA.