FxWirePro: AUD/JPY holds crucial resistance at 87.069 but oscillators signal bearish trend

This APAC pair held firmly the strong support (at 84.304 region) on monthly charts, you can figure out from the chart that the yellow circled areas served as the strong demand and supply levels for this pair couple of times in the past as well.

However EOD graphs suggest bearish signals even though we spot out a dragonfly doji at 86.713 which is a bullish pattern, the pair is currently testing a crucial resistance at around 87.069 levels, it seems unable to breach that level.

More importantly, leading oscillators like RSI and slow stochastic curves began showing divergence with the previous upswings; we believe this as bears are getting active. RSI is currently trending at around 53.7140 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 resistance level would determine the direction of next uptrend but little bias towards south.