AUD/JPY trades largely rangebound, remains offered on the day, made a high of 80.82 and a low of 80.11.
- Poor performance across US markets overnight and renewed weakness in oil furthers demand for Yen.
- Data earlier today showed Aussie Q4 wage price index came in at 2.2% y/y, down from 2.3% in Q3, extending the downward trend.
- Price action remains below the cloud and we see a bearish 5and 10 DMA crossover on daily charts.
- Momentum is lower, break below 80 (psychological level) could see drag till 79.82 and then 79.20 levels.
- Markets now await Japan Capex data due tomorrow which will be the next catalyst for the pair.
- Immediate resistance is located by 5-DMA at 80.79, while 80 is immediate support on the downside ahead of 79.82 (Feb 19th lows).
Recommendation: Go short on breaks below 80, SL: 80.50, TP: 79.82/79.20/79
