- AUD/JPY slammed below 85 handle, hots session lows of 85.89 on escalating N.Korean tensions.
- AUD bulls unimpressed yesterday after the RBA refused to join the hawks and retained its neutral stance.
- Negative surprise from China Caixin PMI another blow to the Australian dollar.
- The pace of expansion in China's service sector cooled to 51.6 in June from 52.8 in May, missing expectations of a slight uptick to 52.9.
- At 51.1 in June, the Composite Output Index fell from 51.5 in May to signal the slowest rate of expansion in a year.
- Momentum indicators for the pair are at overbought levels and on the verge of a rollover.
- The pair is trading in a narrow range below 5-DMA and intraday bias remains neutral.
Support levels - 85.62 (61.8% Fib), 85, 84.62 (20-DMA), 84.41 (100-DMA)
Resistance levels - 86.32 (5-DMA), 86.74 (78.6% Fib), 87
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-breaks-major-trendline-resistance-at-85-good-to-go-long-on-dips-778811) has hit all targets.
Recommendation: We prefer to wait for clear directional bias.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
