FX.co ★ AUD/JPY testing support, remain bullish

Price is now testing major support at 81.79 (Fibonacci extension, horizontal support, bullish divergence) and we expect to see a bounce above this level to at least 82.89 (Fibonacci retracement, horizontal overlap resistance). Stop loss is at 81.30 because it is a Fibonacci extension level based on Elliott Wave theory.

Stochastic (34,5,3) is seeing strong support above the 3.8% level and also displays bullish divergence vs price signalling that a bullish bounce is impending.

Buy above 81.79. Stop loss at 82.89. Take profit at 81.30.