FxWirePro: AUD/JPY extends sideways grind, resumption of weakness will see test of 200-DMA
AUD/JPY chart - Trading View
AUD/JPY was trading 0.16% lower on the day at 74.29 at around 07:15 GMT, bias neutral.
The pair is extending sideways grind as price consolidates break below 110-EMA.
Outlook for the pair is bearish. Technical analysis suggests further weakness for the pair.
Price action is below cloud and major EMA's. GMMA shows minor trend is strongly bearish.
MACD and ADX support downside in the pair. Volatility is high and resumption of weakness will see test of 200-DMA at 72.82.
5-DMA is immediate resistance at 74.42. Retrace above 110-EMA will negate any bearish bias. Breakout above daily cloud will change near-term dynamics.
Major Support Levels:
S1: 73.84 (Lower BB)
S2: 72.82 (200-DMA)
S3: 72.52 (June 12 low)
Major Resistance Levels:
R1: 74.42 (5-DMA)
R2: 74.82 (110-EMA)
R3: 75.15 (20-DMA)
Summary: Aussie under pressure as RBA is widely expected to cut rates at its Nov meeting. Risk-off also weighs on the pair. Scope for downside resumption. 200-DMA in sight. Bearish invalidation only above daily cloud.