- AUD/JPY capped below 5-DMA, trades rangebound on the day. Doji formed on daily charts.
- The pair failed to break major trendline resistance at 87.50 on March 3rd, bias remains lower.
- The Reserve Bank of Australia's policy meeting due Tuesday will be in focus, where the central bank is likely to maintain status quo.
- Robust Australia retail sales data failed to support the Aussie.
- Technicals on intraday charts are neutral, but RSI and Stochs are biased lower which support downside.
- AUD/JPY finds next major support at daily cloud top at 85.78, violation there could see drag upto 84.46 (23.6% Fib retrace of 72.437 to 88.176 rally).
Support levels - 85.99 (50-DMA), 85.78 (cloud top), 85.24 (Feb 7 low)
Resistance levels - 86.74 (20-DMA), 87.50 (trendline), 88, 88.15 (Feb 15 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bearish Neutral
1D Neutral Neutral
1W Neutral Neutral
Recommendation: Good to go short on rallies around 86.50, SL: 87.28, TP: 86/ 86.65/ 85.25
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -14.2009(Neutral), while Hourly JPY Spot Index was at 22.3468 (Neutral) at 0920 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
