FxWirePro: AUD/JPY breaks below 100-DMA at 87.21, bias lower, stay short

• AUD/JPY has breached 100-DMA support at 87.21, hit 7-week lows at 87.048.
   
• Aussie CPI yesterday cemented the RBA on hold, while weak PPI data released earlier today weighs further.
   
• Australia PPI dropped to 0.2 percent q/q in Q3 vs previous 0.5 percent. In annualised terms, PPI cooled to 1.6 percent from 1.7 percent.
   
• Technical studies have turned bearish. Stochs and RSI has turned lower and MACD shows bearish crossover.
   
• 38.2% Fib retrace of 81.48 to 90.30 rise at 86.93 is immediate support, while 5-DMA at 87.82 is major resistance.

Support levels - 86.93 (38.2% Fib retrace of 81.48 to 90.30 rise), 86.55 (Sept 6 low), 85.94 (200-DMA)

Resistance levels - 87.21 (100-DMA), 87.83 (5-DMA), 87.89 (50-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-struggles-at-50-DMA-8787-break-below-to-accentuate-weakness-969248) has hit TP1/2.

Recommendation: Book partial profits. Bias lower, stay short for 86.55/ 86.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -168.4 (Bearish), while Hourly JPY Spot Index was at 83.1015 (Neutral) at 0440 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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