Technical Analysis:
- A decisive breakout of AUD/JPY above 20-DMA seen.
- The pair has broken major trendline resistance at 85.35 on 4H charts.
- Momentum studies are bullish, scope for upside rises.
- Next bull target 86.85 (upper Bollinger band).
- Bullish invalidation on close below 20-DMA at 85.08.
TIME TREND INDEX OB/OS INDEX
1H Bullish Overbought
4H Bullish Overbought
1D Bullish Neutral
1W Bullish Neutral
Fundamental Factors:
- Japanese markets closed, traders on a holiday, observing the Coming-of-Age Day.
- Australian markets cheer upbeat Australian housing market data.
- Australia's building approvals (Nov) came at +7.0% m/m vs +4.5% expected and -12.6% last
- The yearly reading stood at -4.8%y/y vs -5.7% exp and -24.9% last.
- Meanwhile, the Australian government warned earlier today that the party for the miners may be over this year. Some caution advised on long calls.
Support levels - 85.41 (1H 20-DMA), 85.20 (5-DMA), 85.08 (20-DMA)
Resistance levels - 86, 86.85 (upper BB), 87, 87.14 (Dec 16 high)
Recommendation: Good to go long on dips around 85.70, SL: 85.20, TP: 86/ 86.85/ 87
