Entering into US session, Yen remains the strongest one for today on risk aversion, followed by Dollar. Australian dollar suffers most, partly due to RBA minutes. And more important due to its close trade tie with China and the US, Australia is inevitable to suffer as casualty in trade war between the two countries.
For now, AUD/JPY is staying above 80.48 support. But this level is rather vulnerable. Both H and 6H action bias showed persistent downside red bars, indicating solid downside momentum.
More importantly, D action bias has also turned downside red today, with W action bias staying neutral. A look at D and W action bias charts should the cross was in a short-to-medium term consolidation pattern since March. And it’s probably ready for a break out.
The regular OHLC weekly chart also showed clear rejection by 55 week EMA, which is medium term bearish. We’d expect a break of 80.48 low soon, to 61.8% retracement of 72.39 to 90.29 at 79.26. This level could be taken out without much hesitation based on current momentum. AUD/JPY would target 100% projection of 89.08 to 80.48 from 84.52 at 75.92 later in the year.
