FxWirePro: AUD/JPY finds strong support at 55-ema, weakness only on break below
Source: FxWire Pro - Technicals / 22 Nov 2020 11:41:36 America/New_York
AUD/JPY chart - Trading View
AUD/USD paused a 3-day downside and was trading 0.10% higher on the day at 75.63 at around 10:00 GMT.
The Australian dollar found bids across the board following a big beat on Australian Retail Sales data.
Data released earlier today showed Australia's Retail Sales rose 1.6% m/m in October, beating forecasts at 0.3% and followed September's 1.1% contraction.
Further, the People's Bank of China (PBOC) kept rates unchanged at 3.85% early today in a sign of confidence in the economic recovery, supporting the antipodeans.
That said, broad risk aversion triggered by US Treasury Secretary Steven Mnuchin's decision to pull the plug on the pandemic relief for struggling businesses could limit gains.
Technical bias for the pair for now remains neutral. 55-EMA is offering strong support at 75.42. Break below could change near-term dynamics.
Major supports on the downside align at 110-EMA at 74.97, 23.6% Fib at 74.07 and then 200-DMA at 72.94.
Violation at 200-DMA will open downside, while retrace above daily cloud will negate bearish bias.
© FxWire Pro 2020. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.