- AUD/JPY halts downside at 20-DMA, decisive close below will accentuate downside.
- Gravestone Doji formation seen at highs on the weekly charts.
- The pair trades with a bearish bias, remains capped below 5-DMA.
- Yen extends downside, fails to benefit from the BOJ’s policy decision and its latest upward revision to economic assessment.
- BOJ Governor Kuroda in the press conference said that current formation of the yield curve is appropriate and does not think yen has weakened excessively at this stage.
- Technical studies are bearish, violation at 20-DMA needed for further drag upto 81 levels.
- RSI and Stochs have rolled over from overbought zone and MACD has shown a bearish crossover.
- Support levels - 85.05 (20-DMA), 84, 83.76 (Dec 5 low), 83.16 (Nov 28 low)
- Resistance levels - 86 (5-DMA), 87, 87.14 (Dec 16 high), 87.53 (Dec 15 high)
- Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-breaks-trendline-support-at-86-good-to-go-short-on-rallies-456802) has hit TP1.
Recommendation: Book partial profits at lows. Bearish invalidation above 87.53.
FxWirePro's Hourly AUD Spot Index was at -82.8477 (Bearish), while Hourly JPY Spot Index was at -21.0949 (Neutral) at 0655 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
