FxWirePro: AUD/JPY extends winning streak to hit 6-week high at 76.32, outlook bullish

AUD/JPY chart - Trading View 

AUD/JPY is extending its 4-day winning streak, hits 6-week high above 76 mark. Outlook remains strongly bullish.

The pair buoyed on improving risk-on, has largely ignored poor Australia Retail Sales data. Hopes for similar stimulus measures in Washington buoyed the risk-on sentiment.

Preliminary readings of Australian Retail Sales for June slipped to 2.4%, missing expectations at 7.1% and in stark contrast to the last month’s jump of 16.9%. 

Further, Australia’s Westpac Leading Index for June crossed 0.19% prior with 0.44%, while Japan’s preliminary Jibun Bank Manufacturing PMI rose to 42.6 beating forecasts at -39.6.

AUD/JPY is extending trade in a 'Rising Triangle' pattern and has held support at Triangle Base.

Momentum studies are bullish. Major and minor trend according to the GMMA indicator are bullish. 

Price action has broken above weekly cloud. Scope for test of Triangle Top at 76.85. Triangle breakout will buoy prices higher.

Major Support Levels: 

S1: 75.43 (5-DMA)

S2: 74.73 (21-EMA)

S3: 73.34 (55-EMA)

Major Resistance Levels: 

R1: 76.85 (Triangle Top)

R2: 77 (Psychological mark)

R3: 77.95 (Upper W BB)

Summary: The pair is set to extend gains amid strong technical bias and supporting fundamentals. Rising volatility and bullish momentum in support of uptrend. Scope for test of 78 mark. Dips can be used to enter longs.