FxWirePro: AUD/JPY holds 20-DMA support at 88.25, weakness likely on break below

• AUD/JPY holds above 20-DMA support at 88.25, we see weakness on break below.
   
• Technical indicators are bearish, scope for test of test of major trendline support at 87.20.
   
• The pair is continuing downside along the 'Bullish Cypher' formation on the daily charts.
   
• Immediate support below 20-DMA lies at 50-DMA at 87.66. Violation at 50-DMA could see drag till 87.20.
   
• On the flipside, 5-DMA at 88.62 is immediate resistance ahead of trendline at 90.

Support levels - 88.25 (20-DMA), 87.67 (50-DMA), 87.20 (trendline)

Resistance levels - 88.62 (5-DMA), 90 (trendline), 90.30 (Sept 21 high)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-continues-downside-in-Bullish-Cypher-pattern-eyes-20-DMA-at-8796-good-to-short-rallies-914078) has hit TP1.

Recommendation: Bias lower. Watch out for break below 20-DMA for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -119.886 (Bearish), while Hourly JPY Spot Index was at 2.08609 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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