FxWirePro: AUD/JPY trades narrow range below 5-DMA, bias lower, stay short

• AUD/JPY rejected at weekly 200-SMA, edges lower with Doji formation on weekly and daily charts.
• Intraday bias has turned bearish with rollover of RSI and Stochs from overbought levels.
• 5-DMA has turned and MACD is on verge of a bearish crossover on signal line.
• Price action capped below 1H 200-SMA at 88.21, break above could see minor upside till 88.34 (4H 20-SMA).
• Bearish invalidation only on decisive break above weekly 200-SMA 88.6647.
• Immediate support seen at 87.23 (20-DMA), break below could accentuate weakness.

Support levels - 87.40 (weekly 5-SMA), 87.23 (20-DMA), 86.64 (July 12 low), 85.33 (23.6% Fib retrace of 72.437 to 89.324 rally)

Resistance levels - 88.42 (5-DMA), 88.66 (weekly 200-SMA), 89, 89.32 (July 20 high), 90

Call update: We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-fails-to-hold-gains-above-weekly-200-SMA-good-to-go-short-on-rallies-816322).

Recommendation: Bias lower, stay short.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -3.16318 (Neutral), while Hourly JPY Spot Index was at 119.367 (Bullish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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