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2016.07.2602:41:00UTC+00Fxwirepro: Aud/jpy Edges Higher from Session Low at 78.21, Good to Go Short on Rallies

  • AUD extends slight recovery on the day after being hammered lower last week  on expectations of further RBA easing.
     
  • Australia CPI release on Wednesday would be the key determinant of RBA monetary policy stance on August 11th.
     
  • AUD/JPY slides along stiff channel top resistance, downside pauses at 20-DMA support by 78.16.
     
  • Break below will accentuate weakness, scope for test of 75.60.
     
  • Techs are bearish, Stochs and RSI biased lower, MACD is on the verge of a bearish crossover on signal line.
     
  • Bearish invalidation only above channel top currently at 80 levels. 

Recommendation: Good to go short on rallies around 78.60, SL: 79.20, TP: 78.20/ 78/ 77.30
 

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