FxWirePro: AUD/JPY seems weaker after break below support at 81.300, likely drag upto 79.645

After the breach of support 81.300, we think the pair has gone more fragile to evidence more dips upto next strong supports at around 79.645 and may even retest all time lows again. On intraday terms also it has just broken a supports at 80.674 levels and slid below 21DMA, and that is where we could see an attempt 21DMA crossing over 7DMA, as a result more weakness is anticipated in this pair at current level.

You can now figure out a shooting star at peaks of 81.896 and a doji while greater period moving average crossing over shorter term moving average on intraday chart that the circled area served as the strong supply zones this time for AUD side, it has acted as a strong support and resistance at the same juncture couple of times in the recent past as well.

More importantly, selling momentum is intensifying as the leading oscillators like RSI and slow stochastic curves show convergence with the previous downswings; we believe this as bears are getting highly active.

RSI is currently trending at around 39.1679 (while articulating) that has been showing downward convergence to the price dips.

In addition to that on stochastic curve it has reached oversold zone and showing %D crossover which means bulls in previous rallies have been exhausted and selling momentum is intensifying in overbought territory.

We could foresee the next crucial support is only at around 79.645 regions, if it does not manage to hold this level it may even drag up to all time lows again.