FxWirePro: AUD/JPY breaks major trendline support at 85.35, good to go long on dips

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