FxWirePro: AUD/JPY capped below 20-DMA at 86.67, good to go short on rallies

• AUD/JPY failed to break major trendline resistance at 87.50, the pair remains capped below 20-DMA at 86.67.
   
• After dismal Australia trade balance Data on Thursday, weaker-than-expected China’s services PMI data added to the ongoing weakness in the Aussie.
   
• Widespread risk-aversion ahead of Fed Chair Yellen’s speech likely to keep JPY supported.
   
• Technicals on intraday charts are bearish, RSI and Stochs are biased lower.
   
• AUD/JPY finds next major support at daily cloud top at 85.64, violation there could see drag upto 84.46 (23.6% Fib retrace of 72.437 to 88.176 rally).

Support levels - 85.95 (50-DMA), 85.64 (cloud top), 85.24 (Feb 7 low)

Resistance levels - 86.67 (20-DMA), 87.50 (trendline), 88, 88.15 (Feb  15 high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish                Oversold       
4H          Bearish                Neutral       
1D          Neutral                Neutral        
1W         Bearish                Neutral
      
Recommendation: Good to go short on rallies around 86.30, SL: 86.75, TP: 86/ 86.65/ 85.25

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -73.8366(Bearish), while Hourly JPY Spot Index was at -141.437 (Highly bearish) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.