AUD/JPY chart - Trading View
- AUD/JPY is extending weakness for the 5th straight week, bias remains bearish.
- Weaker Australian fundamentals which bolster RBA rate cut calls continue to weigh.
- Further, looming US-China trade war risks also adds to the downside in the Aussie.
- Price action below cloud and major moving averages on the weekly charts.
- Volatility is rising and momentum highly bearish, scope for further downside.
- Upside remains capped at 5-DMA which is downward sloping, MACD and DMI support weakness.
- Next major bear target lies at 75, break below will see test of 61.8% Fib at 74.45.
- Break above 5-DMA could see gains till 76.84 (38.2% Fib). Bearish invalidation above 200-DMA.
Support levels - 75 (trendline), 74.45 (61.8% Fib), 74
Resistance levels - 75.82 (5-DMA), 76, 76.84 (38.2% Fib)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.