• FxWirePro: AUD/JPY closes below weekly cloud and 100w sma, scope for further downside

    Source: FxWire Pro - Technicals / 05 Mar 2018 04:27:25   Eastern Standard Time

    • AUD/JPY has closed below weekly cloud and 100W SMA in last week's trade.
    • 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 and MACD supports trend lower.
    • Price is holding minor support at Apr 19 lows at 81.49, break below will see further downside.
    • Next major support on the downside is seen at 79.26 (61.8% Fib retrace of 72.437 to 90.305 rally).
    • Immediate resistance is seen at 82.40 (trendline), retrace and close above could see minor upside. Breakout above 20-DMA invalidates bearish bias.

    Support levels - 81.49 (Apr 19 low), 81.37 (50% Fib retrace of 72.437 to 90.305 rally), 79.26 (61.8% Fib)

    Resistance levels - 82, 82.40 (trendline), 82.50 (5-DMA), 83

    Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-edges-higher-from-8-month-lows-at-8230-bias-bearish-1176872) has hit TP1/2.

    Recommendation: Book partial profits, hold for further downside.

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