FxWirePro: AUD/JPY Holds Minor Trendline Support at 78.65, Downside to Resume on Break Below
- AUD/JPY keeps losses, as RBA Governor Stevens’ speech failed to lift the sentiment around the AUD.
- Stevens reinforced his pledge to combat lower inflation levels by deploying appropriate monetary policy framework, and thereby justifying his May rate cut stance.
- AUD/JPY hit lows of 78.58 after breaking major support at 79.17 and is currently trade around 78.65 levels.
- Momentum studies are bearish, RSI and stochs are biased lower. Downside now sees next major support at 78.65, breaks below could see test of 78.30 (trendline).
- On the upside resistance is seen at 79, 79.16 (4H 5 SMA), and then at 79.25 (trendline).
- Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-slips-below-79-handle-good-to-short-rallies-211582) has hit TP1.
We recommend booking partial profits, hold for further downside.