FxWirePro: AUD/JPY pauses downside at 23.6% Fib, bias lower, stay short

• AUD/JPY is extending downside for 5th successive session, intraday bias lower.
   
• The pair has paused downside at 23.6% Fib retracement of 81.486 to 90.304 rally at 88.22.
   
• Break below will see extension of downside. Scope then for test of daily cloud at 86.97.
   
• The pair is continuing downside along the 'Bullish Cypher' formation on the daily charts.
   
• Technical studies are bearish on intraday charts, Stochs and RSI have rolled over from overbought levels and biased lower.
   
• 20-DMA at 88.20 is strong support, while 5-DMA at 88.76 is immediate resistance ahead of trendline at 90.

Support levels - 88.13 (20-DMA), 87.66 (Sept 15 low), 86.93 (38.2% Fib retracement of 81.486 to 90.304 rally)

Resistance levels - 89.10 (5-DMA), 89.68 (Sept 25 high), 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) is approaching TP1.

Recommendation: Bias lower, hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -106.078 (Bearish), while Hourly JPY Spot Index was at 56.1991 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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