FxWirePro: AUD/JPY holds cloud support, break below eyes 200-DMA at 85.15

• AUD/JPY was rejected at highs around 86.92, has slipped lower to currently trade at 86.40 levels.
   
• 20-DMA at 87.26 weighs heavily on the upside, we see further gains only on break above.
   
• The pair is trading in a 'Symmetric Triangle' pattern and triangle breakout will provide further direction.
   
• The pair has slipped below 50-DMA and currently holding cloud support. Break below daily cloud top will see further weakness.
   
• Intraday bias is neutral, RSI weak below 50 levels, MACD supports trend lower.
   
• We see major trendline support for the pair at 86 (triangle base), break below could see test of 200-DMA at 85.15.
   
• Bias on weekly charts is bearish. Scope for test of 84.95 (weekly 20-SMA)

Support levels - 86 (triangle base), 85.15 (200-DMA), 84.45 (Aug 11 low)

Resistance levels - 86.39 (38.2% Fib retrace of 81.48 to 89.42 rally), 87.37 (20-DMA) 87.55 (23.6% Fib)

Call update: We had advised a short on the pair (http://www.econotimes.com/FxWirePro-AUD-JPY-finds-major-support-at-8590-good-to-go-short-on-break-below-860867)

Recommendation: Watch out for break below 86.0 to go short.

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