- AUD/JPY has broken consolidation, edges above 61.8% Fib at 88.03, bias higher.
- The Japanese yen trades marginally lower as manufacturing PMI data fails to match expectations.
- Data released earlier today showed Japan December Nikkei manufacturing PMI decreased to 54 from 54.2 in the previous month.
- The pair has shown break of 'Symmetric Triangle' pattern on daily charts, technical studies support further upside.
- We needs a close above 200W SMA at 88.04 for extension of upside. We then see scope for test of 89.40 levels (trendline resistance).
- On the lower side, daily cloud at 87.32 is immediate support, break below to test 100-DMA at 87.11.
Support levels - 87.32 (cloud top), 87.11 (100-DMA), 86.86 (20-DMA)
Resistance levels - 88.03 (200W SMA), 89.03 (78.6% Fib retrace of 90.305 to 84.349 fall), 89.40 (trendline), 90.30 (2017 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-grinds-higher-after-Symmetric-Triangle-breakout-good-to-go-long-on-dips-1073963) has hit TP1/2.
Recomendation: Book partial profits, trail stop loss to 87.30, hold for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 19.8556 (Bullish), while Hourly JPY Spot Index was at -69.1918 (Bearish) at 0820 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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