- AUD/JPY is hovering around 61.8% Fibo at 84.85, break below will accentuate weakness.
- The pair is likely in a phase of consolidation after breach of 200-DMA support last week.
- Technical studies are bearish and support further downside in the pair.
- RSI and Stochs are in oversold territory so some caution advised. MACD supports trend lower.
- We see -ve DMI dominance and ADX is above 25 levels and rising which suggests further downside.
- On weekly charts we see Doji formation and strong support at weekly cloud at 84.22.
- Break below cloud will see test of 78.6% Fib at 83.37 ahead of weekly 100-SMA at 83.16.
- Bearish invalidation on retrace above 200-DMA at 85.9841.
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-on-track-to-test-200-DMA-at-860-good-to-short-rallies-1003727) has hit all targets.
Recommendation: Book partial profits at lows, trail stop loss to 85.50, hold for 84/ 83.75/ 83.40.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -120.603 (Bearish), while Hourly JPY Spot Index was at 82.8491 (Bullish) at 0420 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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