FxWirePro: AUD/JPY holds 50-DMA support, yen dented on reports of JGBs buying by BOJ

• AUD/JPY bounces off 50-DMA support at 85.81, spinning top formation seen at lows.
   
• JPY bulls seem to have lost control following reports of BOJ buying JGBs today.  
   
• The 5-year JGB yields dropped sharply and hit fresh three-month lows, which prompted fresh yen selling across the board.
   
• The pair finds strong support in the 85.85-85.80 region - Cloud top (85.96), 50-DMA (85.81), trendline (85.85).
   
• Technical indicators are inconclusive for now. Only break below 85.80 will see further drag in the pair. 

Support levels - 85.81 (50-DMA, cloud top), 85.24 (Feb 7 low), 85, 84.46 (72.437 to 88.176 rally)

Resistance levels - 86.55 (20-DMA), 86.74 (5-DMA), 87, 87.53 (Dec 15, 2016 high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Neutral                Neutral       
4H          Bullish                 Neutral       
1D          Bearish                Neutral        
1W         Bearish                Neutral   

Recommendation: Good to go short on break below 50-DMA at 85.81, SL: 86.55, TP: 85.25/ 85/ 84.50

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -20.6544 (Neutral), while Hourly JPY Spot Index was at 34.3305 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.