- AUD/JPY hit session lows of 86.51, but has kept above daily cloud, breaks below into the cloud could see further weakness, pair could then test 85.31 (61.8% Fib of 81.97 to 90.72 rise).
- The Aussie dives deeper into the red, markets completely ignored better than expected China's macro updates released over the weekend, focus now remains on the Wednesday's Fed lift-off.
- Oil prices that hover near at seven-year lows negatively impacts the LNG exports from the resource-rich Australia, weighing further on the Aussie.
- Immediate support for the pair is seen at 86.51 (Session low Dec 14) and further below at 86.35 (50% Fib of 81.97 to 90.72 rise).
- Bearish invalidation seen if the pair re-enter channel base at 87.80.
Recommendation: For now we find it good to sell rallies in the pair around 87.30, SL: 87.80, TP: 85.35
Resistance Levels:
R1: 87.38 (38.2% Fib of 81.97 to 90.72 rise)
R2: 87.80 (Channel base resistance)
R3: 88.0 (Nov 17 high)
Support Levels:
S1: 86.51 (Session low Dec 14)
S2: 86.35 (50% Fib of 81.97 to 90.72 rise)
S3: 86.26 (Cloud top)
