FxWirePro: AUD/JPY Holds Minor Trendline Support at 78.65, Downside to Resume on Break Below

FxWirePro: AUD/JPY Holds Minor Trendline Support at 78.65, Downside to Resume on Break Below

24 May 2016, 07:52
Roberto Jacobs
0
8

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. 

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