FxWirePro: AUD/JPY Trade Idea

AUD/JPY chart - Trading View 

AUD/JPY finds stiff resistance at 76 handle, break above will propel the pair higher.

Safe-haven demand high amid US-China trade tensions and as US Treasury Secretary warns of the risk of government running out of cash as soon as early Sept.

Technical indicators support gains. However, upside is limited with Japanese markets closed on a holiday.

RSI and Stochs are biased higher. The pair has bounced off 200 SMA on the 4H charts and has edged above 50-DMA.

Bullish divergence on RSI and Stochs keeps scope for gains. Break into cloud will help the pair resume upside.

Next major hurdle lies at 110-EMA at 77.02 ahead of 61.8% Fib at 78.12. Weakness only below 21-EMA at 75.50

Support levels - 75.50 (21-EMA), 75.27 (20-DMA), 75

Resistance levels - 77.02 (110-EMA), 78, 78.12 (61.8% Fib)

Recommendation: Good to go long on break above 76, SL: 75.50, TP: 77/ 77.35/ 78

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.