AUD/JPY: Upside capped by 8-month long falling trendline as Asian stocks report losses
|- The trendline trending south from January highs is capping upside in the AUD/JPY pair.
- US-China trade tensions revive growth fears and hurt Asian stocks.
The AUD/JPY is reporting marginal gains, having faced rejection at the trendline trending south from the Jan. 23 high and July 19 high.
The trendline hurdle proved a tough nut to crack, possibly due to risk aversion in the equity markets. For instance, the Dow Jones Industrial Average (DJIA) fell 181.45 points, or 0.7%, to 26562.05 yesterday, posting its biggest one-day percentage decline since August.
Further, stocks in Australia and New Zealand are reporting a 0.30 percent drop as of writing and Shanghai Composite index is down close to 0.5 percent in early trade.
Looking forward, the AUD/JPY cross could drop into the red if the risk aversion in the equity markets worsens.
At press time, the cross is trading at 81.90, having tested the trendline resistance of 82.04 earlier today.
AUD/JPY Technical Levels
Resistance: 82.04 (trendline hurdle), 82.36 (Sept. 21 high), 82.80 (Aug. 8 high)
Support: 81.76 (session low), 81.29 (50-day moving average), 81.00 (psychological level)
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