This pair is testing its weak support trend line also after rejecting from the 84.500 area early in the month. The pair moved lower today on fresh fears of an escalation in the trade war between the US and China with US President Trump calling for countries imposing tariffs on the US to remove them or face fresh tariffs from the US. The PBOC also took action to ease the burden of the tariffs on Chinese companies by cutting the RRR. Support for the pair now comes in at the 81.000 area followed by the 80.500 area. A key test will be the 80.000 level with a push below targeting 79.162. The Japanese are perusing a policy of requesting exemptions from US tariffs.
Resistance for the AUDJPY pair comes from Friday’s retest of the 81.952 level. A break higher looks to test the 82.563 level with the 50 DMA at 82.682 and the 100 DMA at the next resistance point at 83.320. There is a stronger resistance zone at 84.000 containing the 200 DMA at 84.133 and the 84.500 ceiling. This would be a key line to break for those expecting higher prices and this would become supportive should price break higher to 85.594 and beyond. Ultimately a move back to the January highs at 89.000 provides traders with a target to aim for.
