FX.co ★ AUD/JPY now on major resistance, time to turn bearish

We caught the rise on AUD/JPY quite nicely yesterday. Today we're starting to see it on major resistance (Fibonacci retracement, horizontal overlap resistance) and we expect to see a strong drop from this level to push the price down to at least 86.66 support (Fibonacci extension, horizontal swing low support).

Stochastic (34,3,1) is seeing major resistance at 99% where we expect a corresponding reaction from.

Correlation analysis: We're seeing commodities weakness with drops expected on AUD/USD, AUD/JPY, and NZD/USD.

Sell below 87.93. Stop loss is at 88.43. Take profit is at 86.66.