FxWirePro: AUD/JPY breaks below 23.6% Fib, scope for test of 200-DMA, stay short

• AUD/JPY pair has dropped to a fresh three-month low of 83.95 on Monday's trade.
   
• Renewed risk-off amid failure of Friday’s Healthcare bill to clear the House vote weighing on the pair.
   
• Downside is hovering around 38.2% Fib of 102.84 to 72.73 fall at 84.05, break below finds next major support at 83.74 (Dec 29 low).
   
• The pair has broken below 100-DMA and Technicals are bearish. We see scope for test of 200-DMA currently at 81.58.
   
• Weekly charts are also bearishly aligned. Price on weekly charts has broken below 20-SMA and MACD has shown a bearish crossover. 
   
• RSI and Stochs on weekly charts are also biased lower. 

Support levels - 84.05 (38.2% Fib of 102.84 to 72.73 fall), 83.74 (Dec 29 low), 83.16 (Nov 28 low)

Resistance levels - 84.96 (5-DMA), 85.24 (100-DMA), 85.71 (Jan 4 high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Neutral       
1D          Bearish               Neutral        
1W         Bearish               Neutral      

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-on-track-to-test-100-DMA-at-85-levels-stay-short-602736) is almost approaching final targets at 83.75.

Recommendation: Book partial profits at lows. Lower trailing stop to 85.25, hold for 83.20/ 83

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -83.0073(Bearish), while Hourly JPY Spot Index was at 83.2391 (Bullish) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.