- AUD/JPY buoyed as markets turn risk-pro after Chinese and American negotiators set up a framework to address the trade imbalances.
- Yen drops in Asia on easing US-China trade tensions as China and US agreed to halt imposing punitive import tariffs.
- The pair which is considered a gauge of risk appetite opened with a bullish gap and is extending upside.
- AUD/JPY is currently trading at 83.64, up 0.62% on the day, bias higher.
- Technical indicators support upside in the pair. RSI shows strength above 60 and Stochs are sharply higher.
- Next bull target lies at 110-EMA at 83.85. Breakout there will see test of 50% Fib at 84.78.
- On the flipside, break below 20-DMA could see test of trendline support at 80.90.
Support levels - 83.07 (5-DMA), 82.49 (20-DMA), 82.39 (50-DMA)
Resistance levels - 83.85 (110-EMA), 84, 84.19 (100-DMA), 84.78 (50% Fib)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-holds-50-DMA-support-at-8241-good-to-go-long-on-dips-1309462) is approaching TP2.
Recommendation: Book partial profits at highs. Trail SL to 83. Stay for further upside.
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