FxWirePro: AUD/JPY extends choppy trade, outlook bullish as long as pair holds above 21-EMA

AUD/JPY chart - Trading View 

AUD/JPY was trading largely muted at around 77.22 at 05:55 GMT, after closing 0.21% lower in the previous session.

The pair is extending choppy trade around 5-DMA and outlook remains bullish as long as price action holds above 21-EMA support.

On the data front, Japan's third quarter GDP was revised up to annualised 22.9% growth, up from an initial estimate of a 21.4%, beating economists’ forecast for 21.5%.

Further, Japan's preliminary estimate of the October Leading Economic Index came in at 93.8, better than the previous 93.3. The Coincident Index printed at 89.7, improving from an upwardly revised 84.8. 

Japan's Economy Minister Nishimura said on Tuesday that while Japan's consumer spending is recovering, the economy hasn't yet recovered to pre-coronavirus pandemic levels.

Nishimura added that capital spending by both manufacturers and non-manufacturers remains weak because of worsening corporate earnings amid the pandemic.

Price action is holding support at rising trendline at 77.00, break below could see a dip till 21-EMA at 76.55. 

Major and minor trend are bullish as evidenced by GMMA indicator. RSI shows strength above 60 mark. We see further weakness only on break below 21-EMA.

Resumption of upside will see test of 61.8% Fib at 78.67 ahead of 200W MA at 79.22.