- AUD/JPY recovery falters at 20-DMA, pair slips lower, retraces break above 5-DMA.
- Technical studies are turning bearish. RSI is biased lower and Stochs have rolled over from overbought levels.
- We see -ve DMI crossover on +ve DMI which adds to the bullish bias.
- The pair is on track to test 100-DMA at 87.34. Violation at 100-DMA could see further weakness.
- We see bearish invalidation only on breakout at trendline resistance currently at 88.90 levels.
Support levels - 87.34 (100-DMA), 86.71 (50% Fib), 86.16 (61.8% Fib)
Resistance levels - 87.95 (5-DMA), 88.20 (20-DMA), 88.90 (trendline)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-breaks-20-DMA-support-at-8820-on-track-to-test-100-DMA-at-8731-stay-short-1112233) has hit TP1.
Recommendation: Book partial profits at lows. Watch for break below 100-DMA for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -13.7131 (Bearish), while Hourly JPY Spot Index was at 53.6392 (Neutral) at 0920 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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