FxWirePro: AUD/JPY breaks 200-DMA support at 86.02, hits 3-month lows, bias bearish

• AUD/JPY has broken below major 200-DMA support at 86.02, hits 3-month lows at 85.65.
   
• Aussie was dented by disappointing wage price and consumer sentiment index data released earlier today.
   
• The wage price index for Q3 came-in at 0.5% q/q vs. 0.7% expected. The annualized figure came-in at 2.0% vs. 2.2% expected.
   
• Australia Westpac Consumer Confidence for November slipped to -1.7% from 3.6% in the previous month.
   
• Upbeat Japanese GDP number released earlier today adding to the weakness in the pair.
   
• Technical studies are heavily bearish, RSI and Stochs are sharply lower.
   
• Weekly charts also support downside in the pair, price action has broken weekly 50-SMA support at 85.90 levels.
   
• Decisive close below 200-DMA could see further weakness. On the flipside, 5-DMA at 86.61 is immediate resistance, break above invalidates bearish bias.

Support levels - 200-DMA (86.01), 85.45 (Aug 11 lows), 84.85 (61.8% Fib retrace of 81.48 to 90.30 rally)

Resistance levels - 87.03 (5-DMA), 87.63 (20-DMA), 87.95 (50-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-on-track-to-test-200-DMA-at-860-good-to-short-rallies-1003727) has hit TP1.

Recommendation: Book partial profits at lows, trail stop loss to 86.70, hold for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -60.705 (Neutral), while Hourly JPY Spot Index was at 37.6814 (Neutral) at 0420 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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