FxWirePro: 'Possible Bullish Bat' on AUD/JPY, good to short break below 86.77

• Rising tensions in the Korean Peninsula after N.Korea successfully tested its sixth nuclear bomb.
   
• Risk-off keeps demand subdued for high-yielding assets and raises safe haven demand for yen.
   
• We see a possible 'Bullish Bat' formation on AUD/JPY daily charts. The pair has broken below 50-DMA at 87.18.
   
• Downside now finds next major support at 20-DMA at 86.77. Break below will see drag.
   
• On the flipside, decisive breakout above daily cloud could see extension on upside till 89.80 (trendline).

Support levels - 87, 86.77 (20-DMA), 86.44 (23.6% Fib retrace of 76.78 to 89.42 rally), 85.70 (Aug 29 low), 85.37 (200-DMA)

Resistance levels - 87.55 (cloud top), 87.94 (Sept 1 high), 88.15 (Feb 15th high), 88.70 (Aug 1 high), 89.80 (trendline)

Recommendation: Good to go short on break below 20-DMA at 86.77, SL: 87.35, TP: 86.45/ 86/ 85.70/ 85.40

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 80.408 (Slightly bullish), while Hourly JPY Spot Index was at 10.0561 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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