- AUD/JPY capped below 50-DMA at 86.74, trades 0.40% lower at the time of writing, bias lower.
- The pair is trading in a 'Symmetric Triangle' pattern and triangle breakout will provide further direction.
- 20-DMA at 87.14 is stiff resistance on the upside, we see further gains only on break above.
- Price action has slipped into daily cloud, finds next immediate support at 86.15 (triangle base).
- Intraday bias is bearish, RSI weak below 50 levels, MACD supports trend lower. Bias on weekly charts is also bearish.
Support levels - 86.15 (triangle base), 85.17 (200-DMA), 84.45 (Aug 11 low)
Resistance levels - 86.39 (38.2% Fib retrace of 81.48 to 89.42 rally), 86.74 (50-DMA), 87.14 (20-DMA)
Recommendation: Watch out for triangle break out 86.15 to go short, SL: 86.75, TP: 85.20/ 85/ 84.50
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