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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 …

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FxWirePro: AUD/JPY bounces off major trendline support at 78.30, good to buy dips
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  • 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
 

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