FxWirePro: AUD/JPY downtrend moving in sloping channel - break below support 81.300 is most likely

We've been observing that although this pair has broken support at 81.300, it is hovering firmly at the same level form last 2-3 weeks.

Since this APAC pair held firmly the strong support (at 81.300 areas), you can figure out whipsaw pattern on 7DMA from the daily (see price curve hanging around 7DMA and 81.300 level). Observe the yellow circled areas served as the strong demand and supply zones for this pair couple of times in the recent past as well.

However EOD graphs signal minor bullish swings as we spot out a dragonfly doji at 80.702 which is a bullish pattern, however, it cannot be isolated as there are enough substantiation from other indicators. The pair is currently testing a crucial resistance at around 81.300 levels, but it is struggling to breach this on closing basis and sustain.

More importantly, leading oscillators like RSI and slow stochastic curves began showing indecision diverging to previous upswings; we believe this as bears are eager to advantages on every price bounces. RSI is currently trending at around 46.8273 that has started showing downward convergence to the price dips above 70 levels which is overbought zone.

In addition to that %D crossover above 80 which is signifying again overbought pressures on stochastic curve and it gives us one more reliable indication that the pair is unlikely to break above mentioned resistance.

Thus, any breach of the above stated 81.300 level would determine the direction of next trend but little bias towards south, and aggressive speculators can still short using mid month futures (CFDs) for targets at 79.645 levels.