FxWirePro: AUD/JPY breaks above 55-EMA, eyes 61.8% Fib at 70.17

AUD/JPY chart - Trading View 

AUD/JPY is extending winning streak for the 4th consecutive session, hits 8-week high at 69.38.

The pair is showing a breakout at 55-EMA resistance which has been capping upside since 2 weeks.

Momentum studies are bullish, price action has edged above daily cloud and 55-EMA breakout reinforces upside bias.

Aussie has largely ignored downbeat China’s Industrial Profits data and remains buoyed amid risk reset across markets.

The pair is on track to test 61.8% Fib at 70.17 and further upside is seen only above 110-EMA (70.59).

On the flipside, failure to hold above 55-EMA negates any bullish bias. Retrace below 21-EMA will see downside resumption.

Support levels - 68.88 (55-EMA), 67.97 (21-EMA), 67.65 (20-DMA)

Resistance levels - 70.17 (61.8% Fib), 70.35 (21W EMA), 70.59 (110-EMA)

Guidance: Good to go long on dips around 68.85/68.90, SL: 68.40, TP: 70.15/ 70.35