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FxWirePro: AUD/JPY extends weakness for the 3rd straight session, eyes 200-DMA at 81.87

AUD/JPY chart on Trading View used for analysis

  • AUD/JPY is extending weakness for a 3rd straight session, bias lower.
     
  • Aussie under pressure after dismal GDP data which has reiterated expectations that the RBA will be on hold for an extended period.
     
  • Data released earlier today showed Australia September quarter GDP arrived well below estimates at 0.3%, widely missed market forecasts of 0.6%.
     
  • Aussie bears have ignored upbeat Chinese Caixin November services PMI, drag the pair lower.
     
  • Recovery was capped at 5-DMA, pair is on track to test 200-DMA at 81.87. Violation there could see further weakness.
     
  • Technical indicators are biased lower. Stochs are on verge of rollover from overbought levels.
     
  • RSI is biased lower and MACD is on verge of bearish crossover on signal line.

Support levels - 82, 81.87 (200-DMA), 81.65 (110-EMA)

Resistance levels - 82.93 (5-DMA), 83, 83.82 (50% Fib)

Recommendation: Good to go short on upticks around 82.40/50, SL: 82.95, TP: 82/ 81.85/ 81.65 

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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