FxWirePro: AUD/JPY bounces off major trendline support at 78.30, good to buy dips
AUD/JPY extends gains in the Asian session after it bounced off major trendline support at 78.30 overnight. Aussie staged a solid comeback overnight from RBA Governor Steven’s comments induced sell-off. The offered tone …
AUD/JPY extends gains in the Asian session after it bounced off major trendline support at 78.30 overnight.
Aussie staged a solid comeback overnight from RBA Governor Steven’s comments induced sell-off.
The offered tone around the yen keeps growing bigger towards mid-Asia on a better risk environment.
But data released earlier showed Australia construction work done registered at -2.6%, below expectations (-1.5%) in 1Q, could cap upside in the pair.
Pair finds immediate resistance at 79.39 (10-DMA) and above that lies major resistance at 79.75 (trendline joining 81.95, 80.56, and double top May 23rd and May 19th).
Supports on the downside are seen at 78.78 (May 23rd lows), 78.63 (May 16th low) and then at 78.30 (trednline).
Intraday bias is higher, technicals on charts support upside, weakness only on break below 78.30.
Recommendation: Good to buy dips around 79.15/20, SL: 78.75, TP: 79.40/79.75