- AUD/JPY edges higher from 8-month lows at 82.30 and is currently trading around 82.55 levels.
- The pair has dipped below weekly cloud at 82.69 and we see further weakness on decisive break below.
- Price action finds strong trendline support at 82.30, break below required for further downside.
- Technical indicators on weekly charts are highly bearish. RSI weakness seen at 33 levels with room for further downside.
- Momentum studies on weekly charts are heavily bearish and we see -ve DMI dominance.
- Next major support lies at 79.26, 61.8% Fib retrace of 72.437 to 90.305 rally.
Support levels - 82.30 (trendline), 81.37 (50% Fib retrace of 72.437 to 90.305 rally), 79.26 (61.8% Fib)
Resistance levels - 83, 83.32 (5-DMA), 84, 84.57 (20-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-tests-channel-base-support-decisive-break-below-to-see-further-weakness-1155124) has hit all targets.
Recommendation: Watch out for breach at major trendline support at 82.30 for further weakness, target 82/ 81.37/ 81/ 79.30.
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