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FxWirePro:AUD/JPY trapped between major EMAs, extends choppy trade

AUD/JPY chart - Trading View 

AUD/JPY was trading 0.39% higher on the day at 81.30 at around 11:30 GMT, bias tilted towards the upside

The pair has been capped between major moving average and breakout required for further direction.

Recently rising covid numbers from Australia, up at 2,231 in the latest report, challenge risk appetite weighing on the antipodeans. 

On the data front, Australia’s AiG Performance of Services Index for September rose to 45.7 from 45.6.

Japan's coincident indicator index extended a decline in August to -2.9% from -0.2% in the previous month. 

The index showing current economic conditions fell 2.9 points from the previous month to 91.5 in August, the Cabinet Office said.

The index of leading economic indicators, used to predict the direction of the economy a few months ahead, fell 2.3 points in August to 101.8.

Further, Chinese market sentiment will also be a crucial driver. Chinese markets will reopen on Friday after a week-long public holiday.

Technical indicators are tilted towards the upside, but price action needs to break out of range trade to have a clear direction.

Upside remains capped at 110-EMA, while 5-EMA at 80.83 limits downside moves. Scope for test of 200-DMA at 82.27. Watch for break above 110-EMA for upside continuation. 
 

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