FXWIREPRO: AUD/JPY Weak on Risk-Off, Slips Below Strong Trendline Support, Good to Sell Rallies
- AUD/JPY under heavy selling pressure in Asia, dented by risk-off across markets.
- Selling in the Nikkei 225 which was down over 3%, (adding pressure on Yen crosses).
- The pair printed a day low of 85.78 and has since pared some losses to currently trade around 85.92.
- Downside has seen breach of strong trendline resistance at 85.98, price action below hourly cloud and 5-DMA support at 85.95.
- Stochs and RSI on daily charts are biased lower, price action on hourly converges with momentum indicators.
- Immediate resistance and supports are seen at 86.55 and 85.46 (10-DMA) respectively.
Recommendation: Good to sell rallies around 85.90/86, SL: 86.55, TP: 85.60/85.35/85.20
The material has been provided by InstaForex Company - www.instaforex.com