FxWirePro: AUD/JPY rejected at daily cloud, scope for resumption of weakness below 5-DMA

AUD/JPY chart on Trading View used for analysis

• AUD/JPY rejected at daily cloud, further upside only on break above.
   
• The pair is trading 0.31% lower on the day at 79.90 at the time of trading.
   
• We see stiff resistance at 80.47 (converged 21-EMA and daily cloud).
   
• Price action is also below major moving averages and we do not see and major signs of reversal.
   
• 5-DMA has turned north and oversold pressure in Stochs on daily charts may see minor upside.
   
• Break above 80.47 could see test of 55-EMA at 80.93 ahead of 110-EMA at 81.59.
   
• Close below 5-DMA will see weakness. Next major support lies at 79.25 (trendline support).

Support levels - 79.90 (5-DMA), 79.20 (Trendline support)

Resistance levels - 80.47 (converged 21-EMA and daily cloud), 80.69 (50-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.