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

• AUD/JPY slipped lower on Thursday as investors reacted to signals that Japan is likely to continue raising interest rates.

• Bank of Japan Deputy Governor Ryozo Himino said Thursday that the central bank will keep raising interest rates if the economy and prices align with its forecasts.

• The BOJ raised interest rates to 0.5% from 0.25% last week on the view that wages will continue rising and keep inflation stable around its 2% target..

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

• Immediate resistance is located at 96.85(Daily high), any close above will push the pair towards 97.54 (38.2% fib).

• Immediate support is seen at 95.99 (23.6% fib) and break below could take the pair towards 95.52 (Lower BB).

 Recommendation: Good to sell around 96.40, with stop loss of 97.00 and target price of 95.50