- AUD/JPY is finding some extra demand amid a relatively positive market sentiment.
- The pair's rebound seems to be capped at 5-DMA at 88.44, bias bearish.
- Price action hovers around 20-DMA support at 88.25, weakness likely on break below.
- AUD/JPY holds above 20-DMA support at 88.27, we see weakness on close below.
- Technical indicators are bearish, scope for test of test of major trendline support at 87.20.
- The pair is continuing downside along the 'Bullish Cypher' formation on the daily charts.
- Immediate support below 20-DMA lies at 50-DMA at 87.67. Violation at 50-DMA could see drag till 87.20.
- On the flipside, 5-DMA at 88.44 is immediate resistance ahead of trendline at 90.
Support levels - 88.27 (20-DMA), 87.20 (50-DMA), 87.20 (trendline)
Resistance levels - 88.44 (5-DMA), 90 (trendline), 90.30 (Sept 21 high)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-continues-downside-in-Bullish-Cypher-pattern-eyes-20-DMA-at-8796-good-to-short-rallies-914078) has hit TP1.
Recommendation: Bias lower. Watch out for close below 20-DMA for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -79.0125 (Neutral), while Hourly JPY Spot Index was at -95.3453 (Bearish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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