FxWirePro: AUD/JPY rejected at strong trendline resistance at 86.22, good to sell rallies

• AUD/JPY extended upside on negative yen fundamentals, but upside was capped at strong trendline resistance at 86.22.
   
• Markets nervous ahead of key central banks’ events along with a fresh batch of economic data lined up for release this week.
   
• Focus remains on FOMC, RBNZ and BOJ monetary policy decision due later this week. 
   
• On the data front, China is set to release data on March industrial profits on Wed, while Japanese data on inflation, retail sales and unemployment are due Thurs. 
   
• Technicals on 2H charts have turned bearish, pair on track to tests support at  85.25 levels.
   
• We see a bearish crossover on 5-DMA on 10DMA, Stochs have rolled over from overbought zone and MACD shows a bearish crossover on signal line.
   
• 2H cloud top at 85.14 is strong support, breaks below could see further downside upto 84.65 levels.
  ​

Recommendation: Sell rallies around 85.60/70, SL: 86, TP: 85.20/85/84.60