FxWirePro: AUD/JPY resumes downside, slips below 61.8% Fib, stay short for 78.6% Fib at 83.37

• AUD/JPY halts two straight sessions of gains, resumes downside.
   
• The pair has slipped below 61.8% Fib at 84.85, bias is bearish.
   
• The major is extending grind after break below 200-DMA which is currently major resistance at 85.96 levels.
   
• Technical studies are bearish, we see scope for further downside.
   
• 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.

Support levels - 84.50 (Nov 20 low), 84, 83.73 (June 22 low), 83.37 (78.6% Fib retrace of 81.486 to 90.305 rally)

Resistance levels - 84.85 (61.8% Fib), 85.09 (5-DMA), 85.96 (200-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-pauses-downside-at-618-Fibo-bias-lower-stay-short-1019468) is progressing.

Recommendation: Hold for downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -116.234 (Bearish), while Hourly JPY Spot Index was at 89.1581 (Bullish) at 1020 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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