AUD/JPY chart - Trading View
AUD/JPY dives over 0.75% on the day and was trading at 73.84 at around 10:55 GMT.
The pair has broken below 23.6% Fib retracement at 74.07 and is on track to test 200-DMA as technical indicators support further weakness.
Price is extending weakness below 110-EMA, volatility is rising and momentum strongly bearish.
MACD and ADX support downside in the pair. Price action is below cloud and major EMA's. GMMA shows minor trend is strongly bearish.
Risk-aversion amid fresh lockdowns likely to be imposed in France and Germany keep downside pressure. Upbeat Australian Q3 CPI data fails to offer any respite.
Scope for test of 200-DMA at 72.80. Break below opens downside, next major support lies at 38.2% Fib at 71.35.
On the flipside, retrace above 110-EMA will negate any bearish bias. Breakout above daily cloud will change near-term dynamics.
Major Support Levels:
S1: 72.80 (200-DMA)
S2: 72.52 (June 12 low)
S3: 71.35 (38.2% Fib)
Major Resistance Levels:
R1: 74.07 (23.6% Fib)
R2: 74.43 (5-DMA)
R3: 74.78 (110-EMA)
Summary: Aussie under pressure as RBA is widely expected to cut rates at its Nov meeting. Risk-off also weighs on the pair. Scope for test of 200-DMA in sight. Bearish invalidation only above daily cloud.


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