FxWirePro: AUD/JPY breaks above daily cloud, scope for further upside

Chart - Courtesy Trading View 

Spot Analysis:

AUD/JPY was trading 1.05% higher on the day at 90.92 at around 11:35 GMT

Previous Week's High/ Low: 92.31/ 87.30

Previous Session's High/ Low: 90.17/ 88.45

Fundamental Overview:

Aussie buoyed across the board after RBA sounded more hawkish than expected  in its minutes.

The minutes showed that the RBA policymakers were considering the options of 15 basis points (bps), 25 bps, and 40 bps rate hike.

The minutes also showed that labor cost is rising in a tight labor market and the formation is expected to continue further.

Focus now remains on the release of Australia employment data on Thursday.  

Analysts expect 30k job additions to the labour force, higher than the prior print of 17k. While the Unemployment Rate is likely to improve to 3.9% from the former figure of 4%.

Technical Analysis:

- AUD/JPY is extending gains for the 3rd straight session

- The pair has broken above daily cloud and 55-EMA 

- Stochs and RSI are biased higher, Stochs show bullish rollover from oversold levels

- Price action has edged above 200H MA and GMMA indicator shows major and minor trend are bullish

Major Support and Resistance Levels:

Support - 90.61 (200H MA), 90.04 (55-EMA), 89.72 (5-DMA)

Resistance - 91.18 (21-EMA), 91.67 (20-DMA), 92

Summary: AUD/JPY is testing 21-EMA resistance, break above will fuel further gains.