FxWirePro: AUD/JPY forms Gravestone within Symmetric triangle, short for TP at 86.604

The pair has been fragile to hold onto the crucial support at around 87.299.

Breaks below this support after the yesterday's formation of Gravestone Doji at 86.890.

For now heading test the supports at 86.604 and even 85.895 levels which we already stated earlier that it was unable to breach above these levels, as a result more weakness is anticipated in this pair at current level.

More importantly, as shown in the diagram symmetric triangle pattern is spotted out, this symmetrical continuation triangle (Bearish) is deemed a bearish signal, indicating that the current downtrend may continue upto above stated support levels.

EOD graphs reveal bearish sentiments, you can figure out the pair has currently fallen below 10DMA and headed towards south.

More importantly, leading oscillators like RSI and slow stochastic curves began showing convergence with the previous downswings; we believe this as bears are getting active.

RSI is currently trending at around 52.7236 that has been showing downward convergence to the price dips from 70 levels which is overbought zone.

While bears to extract maximum leverage to their returns as we can see the attempts of %D crossover that is signifying again more retracement is likely and it gives us one more reliable indication that the pair is likely to find above mentioned support level.

Hence, it is advisable to short on rallies for targets at around 86.604 1st and may even drag upto 85.895 levels too, but keep a strict stop loss at 87.299.