FxWirePro: AUD/JPY retraces above 85 handle, scope for further upside, 200-DMA at 85.90 in sight

• AUD/JPY is extending gains above 85 handle, intraday bias higher.
   
• The pair has retraced break below 61.8% fib at 84.85, eyes 200-DMA at 85.90.
   
• Technical indicators are turning slightly bullish. We see a turn in 5-DMA.
   
• RSI has retraced from oversold levels and Stochs are on verge of a bullish rollover.
   
• MACD is on verge of a bullish crossover on signal line which if completed adds to the bullish bias.
   
• Trend is bearish, this is only a minor upside opportunity, only decisive break above 200-DMA could invalidate bearish bias.

Support levels - 84.85 (61.8% Fib retrace of 81.48 to 90.30 rally), 84.75 (5-DMA), 84.35 (Nov 27 low), 84, 83.37 (78.6% Fib)

Resistance levels - 85.80 (20-DMA), 85.90 (200-DMA), 86.15 (trendline)

Recommendation: Go long on close above 85 handle, SL: 84.75, TP: 85.80/ 85.90/ 86.15

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 62.1452 (Neutral), while Hourly JPY Spot Index was at -131.732 (Bearish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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