FxWirePro: AUD/ JPY falls on RBA dovish stance, plunge to test a key fibo grows

• AUD/ JPY eased on Tuesday after Reserve Bank of Australia softened its tone on the inflation outlook.

• At the conclusion of its December policy meeting, the Reserve Bank of Australia held the cash rate steady at 4.35% but moderated its previously hawkish stance.

• Swaps now imply there is a 54% chance of a rate cut in February, with a first easing more than fully priced in by April next year.

•The technical outlook remains bearish and points to eventual bigger drop, fourteen-day momentum is negitive reinforcing the scope for a bigger losses  

• Immediate resistance is located at 97.41 ( 38.2% fib), any close above will push the pair towards 98.48 ( 50% fib).

• Immediate support is seen at 96.04 (23.6% fib) and break below could take the pair towards 95.26 (Lower BB).

 Recommendation: Good tosell around 97.20, with stop loss of 98.50 and target price of 97.00