AUD/JPY approaching major support, prepare to buy

Price has continued to drop strongly since yesterday. The key now is to wait for a major support level to buy from. We see the major support at 87.04 (multiple Fibonacci extensions) and expect to witness a short term corrective bounce above this level to at least 87.52 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic (34,5,3) is seeing a major support at 3.7% where we expect a corresponding bounce from.

Correlation analysis: We are see JPY weakness across the board with bounces expected on EURJPY, AUDJPY and USDJPY.

Buy above 87.04. Set stop loss at 86.85 and take profit at 87.52.

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