FxWirePro: AUD/JPY finds major support at 85.90, good to go short on break below

• AUD/JPY is extending downside after rejection at 20-DMA in last week's trade.
   
• The pair is struggling to hold triangle breakout, has slipped below 50-DMA.
   
• Yen is likely to hold its safe haven appeal as geopolitical concern regarding North Korea resurface.
   
• Intraday bias is bearish, RSI weak below 50 levels, MACD supports trend lower.
   
• We see major trendline support for the pair at 85.90 (triangle base), break below could see further weakness.


• Bias on weekly charts is bearish. Break below 85.90 raises scope for test of 84.95 (weekly 20-SMA).

Support levels - 86, 85.90 (rising trendline), 84.95 (weekly 20-SMA)

Resistance levels - 86.39 (38.2% Fib retrace of 81.48 to 89.42 rally), 87.37 (20-DMA) 87.55 (23.6% Fib)

Recommendation: Good to go short on break below 85.90, target 85.45/ 85.

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