FxWirePro: AUD/JPY rangebound, finds stiff resistance at 55-EMA, stay long on break above

AUD/JPY chart on Trading View used for analysis

• AUD/JPY is trading in a narrow range at 78.94 at the time of writing.
   
• The pair has paused upside at stiff resistance at 55-EMA, break above could see further upside.
   
• Aussie buoyed by upbeat Chinese PMI data released earlier today along with an above-forecast Aussie export price index.
   
• Technical indicators as of now are not fully supportive for an upside in the pair.
   
• However, a decisive break above 55-EMA could change our view. Scope then for jump till 21-W EMA at 79.94.
   
• 20-DMA is strong support and break below will invalidate any bullish bias.

Support levels - 78.64 (5-DMA), 78.16 (20-DMA), 77.23 (50% Fib)

Resistance levels - 79.26 (55-EMA), 79.94 (21-W EMA), 80.12 (110-EMA)

Recommendation: Watch out for break above 55-EMA to go long, target 79.90/ 80.15

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