- AUD/JPY has bounced off support by daily cloud top at 85.77 on March 9th, bias higher.
- We see stiff resistance at 87 (falling trendline), break above could see further upside.
- Downside is holding above major support by 50-DMA at 86.17, weakness only on break below.
- The ongoing weakness in the yen is mainly driven by the risk-on sentiment amid higher Asian indices and treasury yields.
- Markets believe that the US payrolls data would paint a better picture of the US labor markets, prompting the Fed to hike rates as early as next week.
Support levels - 86.37 (5-DMA), 86.17 (50-DMA), 85.78 (cloud top)
Resistance levels - 87 (falling trendline), 87.48 (March 7 high), 88
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bullish Neutral
1D Neutral Neutral
1W Neutral Neutral
Recommendation: Good to go long on breakout above 87, SL: 86.35, TP: 87.50/ 88/ 88.15
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 1.96033(Neutral), while Hourly JPY Spot Index was at -94.3418 (Highly bearish) at 0740 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
