FxWirePro: AUD/JPY erases upbeat Australia jobs data-led gains, break below cloud will accentuate downside

AUD/JPY chart - Trading View 

AUD/JPY was trading largely muted on the day at 84.24 at around 07:40 GMT, outlook bearish.

The pair was mildly bid after RBA’s Lowe and upbeat Australia jobs report, but failed to build on the upside momentum.

Upbeat Aussie employment data buoyed the Australian dollar, however, dwindling market sentiment keeps upside in check.

Australia Unemployment Rate fell to 5.1% missing forecasts at 5.5%, while the Employment Change rallied past +30.0K forecasts and -30.6K previous readouts to +115.2K during May.

RBA Governor Philip Lowe's sober comments as he pushed for the need for further easy money while citing inflation and wage growth concerns, weighed on the Aussie.

Price action has erased session's gains, slipped lower from session highs at 84.61 and is currently hovering around 55-EMA support.

Technical bias is bearish. RSI has slipped below the 50 mark. Bearish RSI divergence on the daily charts adds to the bearish bias.

The pair finds strong support at 55-EMA and daily cloud, break below will drag the pair lower. Scope for test of 23.6% Fib at 82.81.