AUD/JPY rejected at 50-DMA, retrace upto 82.50 likely
AUD/JPY was rejected at 50-DMA and the pair is extending downside for 2nd straight session.
Price action capped below daily Ichimoku cloud which weighs heavily on the upside.
The pair has broken below 20-DMA at 83.53 and is currently trading at 83.42 levels.
Intraday bias is lower and technical indicators are mildly bearish.
Close below 20-DMA will likely see retrace upto trendline at 82.50. We see bearish invalidation on break above 50-DMA.
Violation at 82.50 cloud see further drag.
Support levels - 83, 82.67 (May 5 low), 82.50 (trendline), 82.16 (38.2% Fib)
Resistance levels - 83.53 (20-DMA), 83.89 (5-DMA), 84.16 (50-DMA), 84.46 (23.6% Fib of 72.43 to 88.17 rally)
Good to go short on rallies around 83.50, SL: 84, TP: 83.20/ 83/ 82.70/ 82.50
Risk averse can short close below 20-DMA
Price action capped below daily Ichimoku cloud which weighs heavily on the upside.
The pair has broken below 20-DMA at 83.53 and is currently trading at 83.42 levels.
Intraday bias is lower and technical indicators are mildly bearish.
Close below 20-DMA will likely see retrace upto trendline at 82.50. We see bearish invalidation on break above 50-DMA.
Violation at 82.50 cloud see further drag.
Support levels - 83, 82.67 (May 5 low), 82.50 (trendline), 82.16 (38.2% Fib)
Resistance levels - 83.53 (20-DMA), 83.89 (5-DMA), 84.16 (50-DMA), 84.46 (23.6% Fib of 72.43 to 88.17 rally)
Good to go short on rallies around 83.50, SL: 84, TP: 83.20/ 83/ 82.70/ 82.50
Risk averse can short close below 20-DMA
Recovery rejected at 83 handle.
Scope for test of 81.53/ 81 levels.