AUD/JPY: strong downside below 200 dma break 80.0 handle

AUD/JPY is consolidated and the bulls are defending the 79.0 handle after the sharp decline seen in early Asia today within the choppy sideways 50 pip range on the short-term sticks.

Both the Yen and Aussie are having a hard time of things where the greenback is attracting demand again as the week progresses since last week's nonfarm payrolls details that did anything but prevent the dollar bulls from marching on.

Nonfarm payrolls: a reality that nobody really wants to admit

The upside in AUD/JPY was curbed of late due to the RBA's outlook for inflation being downgraded by 1% and markets placing bets for further rate cuts to come following the recent rate cut from the Central Bank that went from vigilant to being concerned and taking action to help try and stimulate a potentially stagnating economy. The minutes from the BoJ yesterday showed that there are members who are concerned over the negative implications of further negative deposit rates in Japan and that too is concerning for the path of the Yen while verbal intervention is unlikely to have a long lasting intended effect.

AUD/JY levels

AUD/JPY's price is below the 100 sma on the hourly sticks while other mas's accumulate at current spot with RSI neutral on the same time frame within the wider bearish trend from 84.40 highs on the 22nd April. the 200 dma stands at 85.37 where a triple top took place between early Feb, late March and end of Apri business. The 2016 lows are located at 77.58.