- AUD/JPY has broken major resistance at 83.15, we see scope for further upside.
- Aussie buoyed after stellar Australia’s labour market report.
- Australia's jobs data was upbeat across most major indicators, against expectations of a minor correction.
- The economy added 52.1K in full time jobs, while the jobless rate dropped to 5.5%. Meanwhile, the participation rate improved to 64.9%.
- The pair has taken out major trendline resistance at 83.15 levels.
- Technical studies are biased higher, RSI and Stochs point north. Next target for bulls is 84.04 (38.2% Fib of 88.17 to 81.486 fall).
- Downside is holding above 20-DMA support at 82.90 and we see weakness only on break below.
Support levels - 82.87 (20-DMA), 82.81 (5-DMA), 81.80 (trendline)
Resistance levels - 83.09 (200-DMA and 23.6% Fib), 83.61 (cloud base), 84.04 (38.2% Fib)
Recommendation: Good to go long on dips around 83 levels, SL: 82.50, TP: 83.60/ 84/ 84.50
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 46.7142 (Neutral), while Hourly JPY Spot Index was at 48.2734 (Neutral) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
