Daily cloud was strong resistance for AUD/JPY upside, refer previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-upside-stalls-at-618-Fib-price-action-contained-within-daily-cloud-177045)
- Price action in the pair has now has broken above the cloud.
- Upside has extended above the 85.70 levels which is is 61.8% Fib retracement of 90.725 to 77.582 fall.
- Momentum is higher, RSI strength seen at 64 levels, and major moving averages are biased higher.
- Pair finds next resistance at 87.32 (200-DMA), then 87.50 (Oct 15th highs) and then at 87.91 (78.6% Fib retracement of 90.725 to 77.582 fall).
- 5-DMA at 85.05 is immediate support on the downside, ahead of cloud base at 84.96 and then 10-DMA at 84.25.
Recommendation: Good to buy dips around 86 levels,SL: 85, TP: 87.50/87.91/88.50
