- AUD/JPY breaks above 'Symmetric Triangle' pattern, scope for further gains.
- Aussie buoyed on robust GDP data and upbeat China Caxin manufacturing PMI data.
- Australia Q4 GDP Q/Q increase to 1.1%, beating forecasts for 0.7% rise vs previous -0.5%.
- China's manufacturing activity gained momentum in February, Caixin manufacturing PMI rose to 51.7 last month from 51.0 in January.
- AUD/JPY has taken 50-DMA support at 85.85 on Tuesday and edged higher.
- The pair has broken above 20-DMA and hovers around 87 levels, intraday bias is higher.
- Technical studies support upside, we see weakness only on break below 50-DMA at 85.88.
Support levels - 86.65 (20-DMA), 86.52 (5-DMA), 85.88 (50-DMA)
Resistance levels - 87.53 (Dec 15 high), 88, 88.15 (Feb 15 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Overbought
4H Bullish Neutral
1D Neutral Neutral
1W Neutral Neutral
Recommendation: Good to go long on dips around 86.80/90, SL: 86.50, TP: 87.50/ 88/ 88.15
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 25.7785 (Neutral), while Hourly JPY Spot Index was at 5.57178 (Neutral) at 0650 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
