FX.co ★ AUD/JPY dropping nicely, remain bearish for a further drop

The price has dropped nicely from yesterday and we remain bearish below 88.92 resistance (Fibonacci extension, Fibonacci retracement, Elliott wave theory, bearish divergence) for a drop towards 88.17 support (Fibonacci retracement, horizontal overlap support).

Stochastic (34,5,3) is seeing major resistance below 95% where we expect a reaction from soon. We can also see bearish divergence vs price signaling that a reversal is impending.

Correlation analysis: We are seeing JPY strength with AUD/JPY, EUR/JPY and USD/JPY expecting drops.

Sell below 88.92. Stop loss is at 89.35. Take profit is at 88.17.