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FxWirePro: AUD/JPY confirms 'Bearish Engulfing' on daily charts, scope for some weakness

AUD/JPY chart - Trading View 

Spot Analysis:

AUD/JPY was trading 0.56% lower on the day at 85.40 at around 11:15 GMT.

Previous Week's High/ Low: 84.92/ 81.85

Previous Session's High/ Low: 85.97/ 85.38

Fundamental Overview:

Renewed worries about potential contagion from China Evergrande's debt crisis after a $2.6 billion stake in its property services unit failed, spook markets.

The news tempered investors' appetite for riskier assets and benefitted traditional safe-haven currencies like the yen.

On the data front, Australia's Q3 NAB Business Confidence drops to -1, below market forecast at 5 and prior reading of 17.

Technical Analysis:

- AUD/JPY slips lower from fresh multi-year highs at 86.25

- The pair has formed a 'Bearish Engulfing' on the daily charts

- Oscillators are at overbought levels, raising scope for weakness

Major Support and Resistance Levels:

Support - 85.23 (5-DMA), Resistance - 86.25 (Monthly high)

Summary: AUD/JPY hovers around major resistance at 200-month MA. Decisive close above required for further upside. 'Bearish Engulfing' raises scope for some weakness. 

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