FX.co ★ AUD/JPY approaching major resistance, prepare to sell

The price is approaching major resistance at 88.26 (Fibonacci extension, Elliott wave theory) and we expect to see a reaction of this level for a drop to at least 87.27 support (Fibonacci retracement, horizontal pull back support).

Stochastic (34,5,3) has been testing out 98% resistance for quite some time and we expect a drop on it soon.

Correlation analysis: AUD weakness is expected today with AUDUSD similarly testing major resistance and expecting a drop.

Sell below 88.26. Stop loss is at 88.68. Take profit is at 87.27.