FxWirePro: AUD/JPY extends weakness below daily cloud, outlook bearish

AUD/JPY chart - Trading View 

AUD/JPY was trading 0.31% lower on the day at 75.08 at around 05:25 GMT, outlook remains bearish.

The pair is extending weakness below daily cloud and is currently hovering around minor support at 110-EMA at 74.85.

Technical studies support weakness and break below 110-EMA will see dip till 23.6% Fib at 74.07 ahead of 200-DMA at 72.85.

The Australian dollar is under pressure following poor data from China and Australia and dovish comments from RBA's Lowe.

RBA governor Philip Lowe said that the country's budget strategy was right but kept alive the possibility of rates cuts from the central bank.

Further China's price pressures for both producers in the PPI and consumers in the CPI have missed expectations adding pressure on the commodity currencies.

Analysis of the intraday charts shows price action has slipped below 200H MA and momentum has turned bearish.

Break below 110-EMA will drag price lower. On the flipside, 20-DMA is capping upside at 75.35. Retrace above could pause downside.