AUD/JPY breaks below major support at 88.40, drop till 87.40 likely

• Our AUD/JPY short call (link below) has reached targets. We see further downside for the pair.
   
• Major trendline support at 88.40 has been breached, the pair is now set to test 87.38 (38.2% Fib of 81.97 to 90.72 rise).
   
• MACD on dailies has slipped below zero, daily Stochs and RSI are also biased lower, while Stochs on weeklies shows bearish crossover from overbought levels.
   
• Immediate resistance is seen at 88.58 (21 DMA) and then at 88.67 (23.6% Fib of 81.97 to 90.72 rise), while supports are located at 88.77 (Nov 19 low) and further below at 87.38 ((38.2% Fib of 81.97 to 90.72 rise).
   

Recommendation: Good to sell rallies around 88.40, SL: 89.00, TP: 87.40 

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