- Markets disappointed with Bank of Japan holding interest rates, JGB purchases and monetary base unchanged.
- AUD/JPY unable to break above stiff channel top resistance, downside now breaches 21-DMA support currently at 78.36.
- Momentum studies are bearish, Stochs point south and MACD line shows a bearish crossover on signal line.
- Price action has dipped below the daily cloud and we see scope for further downside.
- Markets now await BOJ Chief Kuroda’s press conference for fresh insights on the easing measures.
- Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-edges-lower-from-session-high-good-to-go-short-on-rallies-241198) has achieved all targets.
Recommendation: Good to sell rallies around 78.20, SL: 79.20, TP: 77.30/ 77/ 76.50
