FX.co ★ AUD/JPY testing major support, time to buy for a corrective bounce

The price has dropped strongly and is now testing a major support level at 86.58 (Fibonacci extension, long-term Fibonacci retracement, fake horizontal breakout). We look to buy above this level for a corrective bounce to at least 87.21 resistance (Fibonacci retracement, Fibonacci extension, horizontal swing high resistance, bullish divergence).

Stochastic (89,3,1) is seeing strong support above 1.2% and also sees bullish divergence vs price signaling that a bounce is impending.

Buy above 86.58. Stop loss is at 86.26. Take profit is at 87.21.