FxWirePro: AUD/ JPY attracts selling interest, vulnerable to more downside

• AUD/ JPY sipped lower on Wednesday as  Japanese currency strengthened on the back of comments from BOJ Governor Kazuo Ueda.

• At a gathering of regional bank executives, Ueda said that the central bank would raise rates if economic and price conditions continue to improve.

•His comments followed a statement from Deputy Governor Ryozo Himino, who said the BOJ would discuss the possibility of raising interest rates at next week's policy meeting.

• The main market event on Wednesday will be the U.S. inflation report, with investors expecting a 0.2% monthly increase in core consumer prices for December.

•The technical outlook remains bearish and points to eventual bigger gains, fourteen-day momentum is negivtive, reinforcing the scope for a bigger drop.  

• Immediate resistance is located at 97.92 ( 38.2% fib), any close above will push the pair towards 98.81 (50% fib).

• Immediate support is seen at 97.04 (23.6% fib and break below could take the pair towards 96.32 (Lower BB).

 Recommendation: Good to sell around 98.20, with stop loss of 98.80 and target price of 97.40