AUD/JPY chart - Trading View
AUD/JPY retraces from 3-week highs at 81.31, slips below 81 handle to trade at 80.72 at around 10:45 GMT.
The pair has paused recovery shy of major resistance at 81.35 (nearly converged 21-week EMA and 110-EMA).
China Evergrande Group's unsolved debt crisis, intensifying energy crisis in Europe and China along with poor China's industrial profits data keep sentiment weak.
Data released by China's statistics bureau showed on Tuesday that profits at China's industrial firms grew at a weaker pace in August from a year earlier, slowing for a sixth consecutive month.
China's Industrial Profits rose 10.1% on year to 680.3 billion yuan ($105 billion) last month compared with a 16.4% gain in July.
Doubts over China's post-pandemic economic recovery eclipsed any optimism over an improvement in Sino-U.S. relations.
AUD/JPY intraday price action is biased lower. RSI divergence on the hourly charts raises scope for further downside.
20-DMA is immediate support at 80.54. Break below 21-EMA (80.32) will see more weakness. Upside continuation only above 110-EMA.
