FxWirePro: AUD/JPY holds 200-DMA breakout, bias higher, 87.07 next bull target

• AUD/JPY pared some gains, slipped lower from 4-week highs at 86.49.
   
• Upside was capped below 50-DMA at 86.52, breakout to see resumption of upside.
   
• The pair has however, held break above 200-DMA and we see scope for further gains. 
                
• Aussie continues to extend upbeat jobs data led gains, is trading marginally higher on the day.
   
• Technical studies are biased higher, RSI above 50 and gaining further traction.
   
• Momentum studies bullish and we see +ve DMI dominance with ADX above 25 levels and rising.
   
• Next bull target lies at 87 (converged 100-DMA and falling trendline). Bearish invalidation on retrace below 200-DMA.

Support levels - 85.90 (5-DMA), 85.85 (200-DMA), 85.75 (23.6% Fib retrace of 90.305 to 84.349 fall)

Resistance levels - 86.52 (50-DMA), 86.62 (38.2% Fib), 87.07 (100-DMA), 88.03 (61.8% Fib)

Call update: We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-edges-lower-from-4-week-highs-at-8649-bias-higher-good-to-go-long-on-dips-1058745).

Recommendation: Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 159.07 (Bullish), while Hourly JPY Spot Index was at 94.0461 (Bullish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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