- AUD/JPY remains capped below 20-DMA currently at 83.56. Upside likely on break above.
- Aussie subdued on the day after Moody’s downgraded China’s long-term local currency and foreign currency issuer ratings to A1 from Aa3 and changed the outlook to Stable from Negative.
- Also data today showed pace of construction work done in Australia during the March quarter of 2017 shrank and came in sharply below expectations.
- The pair finds strong support at 82.71 (200-DMA) and then 82.55 (trendline).
- Close below trendline support will see drag lower. Scope then for test of 81.53 (April 20 low) and then 80.30 (50% Fib of 72.43 to 88.17 rise).
Support levels - 83.16 (5-DMA), 83, 82.71 (200-DMA), 82.55 (trendline)
Resistance levels - 83.56 (20-DMA), 84.03 (38.2% Fibo 88.148 to 81.486 fall), 84.50 (May 15 high)
Recommendation: Wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -92.7763 (Bullish), while Hourly JPY Spot Index was at -50.778 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
