FxWirePro: AUD/JPY on track to extend weakness, close below cloud to plummet prices

Chart - Courtesy Trading View 

Spot Analysis:

AUD/JPY was trading 0.83% lower on the day at 93.07 at around 16:45 GMT.

Previous Week's High/ Low: 96.53/ 93.38

Previous Session's High/ Low: 94.03/ 93.12

Fundamental Overview:

Data released earlier today showed China Caxin Manufacturing PMI printed at 48.1, lower than the expectations and the prior release of 49.5.

A weaker-than-projected Caixin Manufacturing PMI data carries a significant impact on Australian exports.  

Investors now await the announcement of October’s monetary policy decision by the Reserve Bank of Australia (RBA).

Technical Analysis:

- AUD/JPY ignores Hammer formation on the previous session, extends weakness

- Momentum is bearish, volatility is high and rising

- MACD and ADX support downside in the pair

- GMMA indicator shows minor trend is bearish while major trend is turning bearish

Major Support and Resistance Levels:

Support - 92.42 (Lower BB), 90.33 (200-DMA)

Resistance - 93.34 (110-EMA), 94.62 (55-EMA)

Summary: AUD/JPY trades with a bearish bias. The pair is poised to extend weakness. Scope for test of 200-DMA at 90.33.