FxWirePro: AUD/JPY tests channel base support, decisive break below to see further weakness

• AUD/JPY tests channel base support, bias bearish, scope for weakness on decisive break below channel base.
   
• The major has retraced from 6-month lows at 83.32 and is currently trading at 84.54 levels.
   
• Upside remains capped at 5-DMA at 87.74 and we see minor upside on break above.
   
• Technical studies support weakness in the pair. RSI nicely converging with price action.
   
• Weekly charts show bearish MACD line crossover on signal line which adds to bearish bias.
   
• Next bear target lies at 81.78 (June 6th lows). Bearish invalidation only above 86.55 (nearly converged 20 & 200 DMAs)

Support levels - 84, 83.80 (channel base), 83.48 (38.2% Fib retrace of 72.437 to 90.305 rally)

Resistance levels - 84.75 (5-DMA), 85, 85.60 (Feb 13 high)

Recommendation: Good to go short on rallies around 84.65/75, SL: 85.60, TP: 84/ 83.50/ 83                  

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