AUD/JPY chart on Trading View used for analysis
- AUD/JPY has broken below strong trendline support at 79.50, bias bearish.
- The safe-haven Japanese currency remains bid on escalating US-China trade tensions, weighing on JPY crosses across the board.
- The Trump administration is likely to impose a fresh set of duties on $200bn (£155bn) of Chinese goods later today, having levied 25% tariffs on $50 billion worth of Chinese exports in July.
- Technical studies on weekly charts are highly bearish. Price action below major EMAs which are downward sloping.
- Momentum studies are bearish and Bollinger Bands are widening in support.
- Price action is currently hovering around 61.8% Fib at 79.26, scope for test of 78.6% Fib at 76.26.
- On the flip side, 5-DMA is immediate resistance at 79.84. Break above could see upside till 21-EMA at 80.70.
- We see bearish invalidation only above 50-DMA at 81.70
Support levels - 79.26 (61.8% Fib), 79, 77.58 (Feb 2016 low), 76.26 (78.6% Fib)
Resistance levels - 79.83 (5-DMA), 80.70 (21-EMA), 81.70 (50-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-Technical-Outlook-1422622) has hit all targets.
Recommendation: Stay short on upticks, SL: 80.75, TP: 79/ 77.60/ 76.30
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -89.7859 (Bearish), while Hourly JPY Spot Index was at 60.8734 (Neutral) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
