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AUD/JPY recovery lacks traction, good to stay short on upticks

 

  • AUD/JPY is trading at 78.110, up 0.40% at 1130 GMT.
  • The pair was rejected at 110-EMA and is extending weakness.
  • Price action has slipped below 50-DMA and has broken into daily cloud.
  • Momentum is with the bears, upside in the pair lacks traction.
  • Immediate resistance is seen at 5-DMA at 78.49, break above eyes 50-DMA at 78.69.
  • On the flipside, weakness till cloud base at 77.11 likely. Break below cloud will see further weakness.

Support levels – 77.44 (Feb 8 low), 77.11 (cloud base), 77

Resistance levels – 78, 78.50 (5-DMA), 78.69

Recommendation: Good to stay short on upticks at 78.20, SL: 78.70, TP: 77.50/ 77.15