FxWirePro: AUD/JPY slips lower from session highs at 78.82, break below 20-DMA to see further weakness

AUD/JPY chart on Trading View used for analysis

• AUD/JPY is trading largely unchanged on the day at 78.60 at 0600 GMT.
   
• The pair has edged lower from session highs at 78.82, intraday bias neutral.
   
• The pair bounced off 20-DMA on Friday's trade and closed above 21-EMA.
   
• Aussie could retrace gains on poor China's industrial profits data which fell 1.9% y/y in Dec, down for the 2nd straight month.
   
• Major trend in the pair is bearish. Close above 21-EMA has raised scope for further upside. Next major resistance lies at 55-EMA at 79.33.
   
• On the flipside, price action is below major moving averages and upside lacks traction. 
   
• 20-DMA is major support. The pair has managed to hold above in the previous week.
   
• Retrace below will see further weakness. We then see little support till lower BB at 76.16.

Support levels - 78.38 (21-EMA), 77.80 (20-DMA), 76.16 (Lower BB)

Resistance levels - 79.33 (55-EMA), 80, 80.20 (110-EMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.