FxWirePro: AUD/JPY rejected at 50-DMA, retrace upto trendline support at 82.50 likely

• AUD/JPY was rejected at 50-DMA and the pair is extending downside for 2nd straight session.
   
• Price action capped below daily Ichimoku cloud which weighs heavily on the upside.
   
• The pair has broken below 20-DMA at 83.53 and is currently trading at 83.42 levels.
   
• Intraday bias is lower and technical indicators are mildly bearish.
   
• Close below 20-DMA will likely see retrace upto trendline at 82.50. We see bearish invalidation on break above 50-DMA.

Support levels - 83, 82.67 (May 5 low), 82.50 (trendline), 82.16 (38.2% Fib)

Resistance levels - 83.53 (20-DMA), 83.89 (5-DMA), 84.16 (50-DMA), 84.46 (23.6% Fib of 72.43 to 88.17 rally)

TIME  TREND INDEX  OB/OS INDEX   

1H          Bearish               Near oversold      

4H          Bearish               Neutral      

1D          Bearish               Neutral       

1W         Neutral               Neutral     

Recommendation: Good to go short on rallies around 83.50, SL: 84, TP: 83.20/ 83/ 82.70/ 82.50

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -17.018 (Neutral), while Hourly JPY Spot Index was at 77.5027 (Slightly bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.