- AUD/JPY finds strong support at 87.50 (rising trendline), we see weakness to extend on break below.
- Aussie extends sell-off in the wake of the latest RBA rate cut talks.
- Price has edged higher from fresh 3-week lows at 87.40 to currently hover around 87.81.
- Technical indicators support downside in the pair, RSI and stochs are sharply lower.
- Break below 87.50 (rising trendline) finds next major support at daily cloud at 87.
- On the flipside, bearish invalidation only above 20-DMA at 88.53.
Support levels - 87.63 (50-DMA), 87.50 (trendline), 87.09 (cloud top)
Resistance levels - 88.20 (5-DMA), 88.38 (W 200-SMA), 88.53 (20-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-continues-downside-in-Bullish-Cypher-pattern-eyes-20-DMA-at-8796-good-to-short-rallies-914078) has hit TP 1/2/3.
Recommendation: Book partial profits at lows. Watch out for break below trendline support at 87.50 for further downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -39.2036 (Neutral), while Hourly JPY Spot Index was at 94.0014 (Bullish) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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