FxWirePro: AUD/JPY struggles at 38.2% Fib, break below targets 200-DMA at 85.96

• AUD/JPY has shown decisive close below 100-DMA on Monday's trade, bias lower.
   
• The pair is struggling to extend break below 38.2% Fib retrace of 81.486 to 90.305 rally at 86.93.
   
• Technical studies are bearish. Stochs and RSI sharply lower and MACD shows bearish crossover.
   
• Break below 38.2% Fib at 86.93 brings 200-DMA at 85.96 in sight. Violation there will see further weakness.
   
• On the flipside, retrace above 100-DMA could see test of daily cloud.

Support levels - 86.55 (Sept 6 low), 85.95 (200-DMA), 85.89 (50% Fib), 85.45 (Aug 11 low)

Resistance levels - 87.20 (5-DMA), 87.29 (100-DMA), 87.87 (cloud base)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-breaks-below-100-DMA-at-8721-bias-lower-stay-short-974705) is progressing well.

Recommendation: Bias lower, stay short for 86.55/ 86.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 67.2789 (Neutral), while Hourly JPY Spot Index was at 170.652 (Bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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