AUD/JPY chart on Trading View used for analysis
- AUD/JPY edges lower despite upbeat Australia Trade Balance data.
- Australia's Trade Balance printed at 1.6 billion early Thursday, beating the 1.4 billion forecast and compared to the previous reading of 1.551 billion.
- However, Australia's Imports continued to show no growth, holding steady at the 0% figure. Exports managed to reverse the previous period's -1% contraction, coming in at 1%.
- The pair is extending weakness for the 3rd straight session, slips below 55-EMA and daily cloud support.
- Technical indicators are turning bearish. Stochs have rolled over from overbought levels and RSI has turned south.
- MACD is on verge of a bearish crossover on signal line which if completed will add to the bearish bias.
- We see strong support at 81 mark (psychological level and 20-DMA). Break below to see further weakness.
Support levels - 81 (20-DMA), 80.62 (June 19 low), 79.70 (Aug 15 low)
Resistance levels - 81.67 (5-DMA), 81.90 (110-EMA), 82
Recommendation: Good to go short on break below 20-DMA, SL: 61.70, TP: 80.65/ 80/ 79.70
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -181.304 (Bearish), while Hourly JPY Spot Index was at 86.9489 (Bullish) at 0415 GMT.
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
