FxWirePro: AUD/JPY slips below 21-EMA, on track for further weakness

AUD/JPY chart - Trading View 

• AUD/JPY trades 0.81% lower on the day at 78.60 at 0540 GMT, bias bearish.
  
   
• Aussie dented on poor data and dovish comments from RBA Governor Philip Lowe, while risk aversion in the stock markets keeps safe-haven bids for the Japanese yen intact.
  
   
• Data released earlier today showed Australia Q4 GDP missed estimates of 0.3% growth and expanded at 0.2% q/q.
  
   
• The annualized growth rate cooled to 2.3% from the previous quarter's print of 2.8%. 
  
   
• Further, RBA's Lowe said it is difficult to see rates will rise in 2019, further fueling downside.
  
   
• Markets focus on Thursday’s Australian trade balance and retail sales data for further impetus.
  
   
• Technical studies have turned bearish. Price was rejected at 110-EMA. 
  
   
• The pair has slipped below 21-EMA and is on track to test daily cloud. Bearish invalidation above 110-EMA.
   

Support levels - 77.76 (Jan 17 low), 77.44 (Feb 8 low), 77.23 (cloud top)

Resistance levels - 78.93 (21-EMA), 79.06 (5-DMA), 79.69 (110-EMA)

Recommendation: Good to go short on upticks, SL: 79, TP: 78/ 77.75/ 77.25

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