FxWirePro: AUD/JPY retraces break below major trendline support at 83.75, bias lower, stay short

• AUD/JPY remains vulnerable to risk aversion, hovers around major trendline support at 83.75.
   
• The pair has retraced a break below major trendline at 83.75, close below will open up for test of 200-DMA at 81.75.
   
• Doji formation seen in the Asian session today, trade is limited to a narrow range. 
   
• Weekly charts remain highly bearish, RSI and Stochs steeply inclined lower.
   
• Aussie meanwhile to find some support from mostly resilient commodity prices and no RBA interest rate hike priced in by markets.
   
• Hence we could see some consolidation at current levels. Bearish invalidation above 5-DMA at 84.50.

Support levels - 83.16 (Nov 28 low), 82.16 (38.2% Fib retrace of 72.43 to 88.17 rally), 81.79 (200-DMA)

Resistance levels - 84, 84.46 (23.6% Fib) 84.48 (5-DMA), 85, 85.46 (100-DMA)

Call update: We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-breaks-major-trendline-support-at-8375-eyes-200-DMA-stay-short-625055).

Recommendation: We recommend holding for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -143.735(Bearish), while Hourly JPY Spot Index was at 105.025 (Bullish) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.