FXStreet (Guatemala) - AUD/JPY is down to test key supporting territory as the carry is unwound in risk-off markets and the Yen winning the bids as investors run for cover. The Chinese data is setting the theme for 2016 with a big miss in the Caixan manufacturing readings. The Antipodeans have been hit the hardest and are struggling to make a comeback in Tokyo while other majors are at least stabilizing vs the greenbacks head start this year. AUD/JPY downside risks Technically, the 100 DMA at 86.94 is being eroded with the lows of 86.30 in a 150 pip move to the downside. 86.21 was Dec's low and that guards 85.50 uptrend before the last summer lows of 82.82. 87.80 is first key resistance meting the 20 DMA. It is also worth noting the technicals in USD/JPY now that the pair has broken below the 120 handle for the first time since Octobers trading. Technically, a break of the psychological 120 handle and daily closes will leave the downside exposed towards the 119.11 2012-2015 uptrend ahead of the uptrend at 118.11. 0.7200 is key for the Aussie bulls and drop below could ignite stops in the cross to 85.80 in a hurry. For more information, read our latest forex news.