AUD/JPY testing major resistance, remain bearish

Price has slowly crept up towards our selling area and we expect to see a drop on it soon. We remain bearish looking to sell below 86.97 resistance (Fibonacci extension, horizontal swing high resistance, Elliott wave theory, bearish divergence) for a drop down towards 85.74 support (Fibonacci retracement, horizontal swing low support).

Stochastic (34,5,3) is seeing strong resistance below 98% and we expect a drop below this level. We can also see bearish divergence has been formed vs price which signals that a drop is impending.

Sell below 86.97. Stop loss at 87.71. Take profit at 85.74.


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