FxWirePro: AUD/JPY upside fails at trendline resistance at 85, drag till 200-DMA at 83.37 likely

• AUD/JPY pauses three-day losing streak, yen depressed as risk-on returns in the markets.
   
• Moderate gains seen in the oil benchmarks could extend support to the Aussie and AUD/JPY could see further upside.
   
• Technically, the pair was rejected at major trendline resistance at 85 levels.
   
• Price action has dipped in daily cloud and we see scope for test of 200-DMA at 83.37 levels.
   
• Violation at 200-DMA could see drag till 82.25 (rising trendline).
   
• Technical indicators are only mildly bearish, Stochs have rolled over from overbought levels, but RSI is biased higher and holds above 50 levels.
   
• We would advise trading with tight stop loss. 
   

Support levels - 83.37 (200-DMA), 83.23 (20-DMA), 83, 82.16 (38.2% Fib of 72.437 to 88.176 rally)

Resistance levels - 84.26 (5-DMA), 84.46 (23.6% Fib), 84.95 (trendline) 

Recommendation: Short rallies around 84.25, SL: 84.55, TP: 83.40/ 83.25/ 82.20

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -78.4358 (Neutral), while Hourly JPY Spot Index was at -59.1299 (Neutral) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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