FxWirePro: AUD/JPY consolidates break below major trendline support, bias lower, stay short

• AUD/JPY is consolidating break below major trendline support at 85.50, bias still lower.
   
• The pair is trading in a narrow range, we see doji formation which suggests some indecision.
   
• Downside has held above 84 levels in last week's trade. We see scope for further downside.
   
• Technical studies on daily and weekly charts support downside. Price action has broken below major moving averages and daily cloud.
   
• Immediate resistance is seen at 5-DMA at 85.35. Bearish invalidation on retrace above 200-DMA at 86.54.

Support levels - 84.88 (88.6% Fib), 84.35 (Nov 27 low)

Resistance levels - 85.35 (5-DMA), 86.16 (61.8% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-shows-breakout-at-Symmetric-Triangle-base-bias-lower-stay-short-1142874) has hit TP1.

Recommendation: Bias lower. Hold for downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 36.5158 (Neutral), while Hourly JPY Spot Index was at 148.879 (Bullish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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