FxWirePro: AUD/JPY under pressure, close below 200-DMA adds to downside bias, good to go short on rallies

• Aussie hurt by weakness in iron ore prices and bearish tone of RBA minutes.
   
• AUD/JPY closed below 200-DMA for the first time after 5-1/2 months.
   
• The pair finds major trendline support at 81.60, break below will accentuate weakness.
   
• Technical indicators are bearish, but caution advised as RSI close to oversold levels.
   
• We see scope for test of 80.30 (50% Fib retrace of 72.43 to 88.17 rally). Bearish invalidation if pair retraces above 200-DMA.

Support levels - 81.60 (trendline), 81.11 (Nov 18 low), 80.30 (50% Fib)

Resistance levels - 82.06 (38.2% Fib), 82.10 (200-DMA), 82.25 (5-DMA), 82.95 (April 18 high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Neutral       
1D          Bearish               Near oversold        
1W         Bearish               Neutral      

Recommendation: Good to go short on rallies around 81.90, SL: 82.80, TP: 81.10/ 80.30

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -68.1476(Bearish), while Hourly JPY Spot Index was at 42.837 (Neutral) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.