- AUD/JPY was capped at major trendline resistance at 87.30, bias remains higher.
- The pair has edged lower to currently trade around 87 handle.
- Technical studies support further gains in the pair. Break above 87.30 will see test of weekly 200-SMA at 88.70.
- Weekly charts are also highly bullish, we see strength in RSI at 64, MACD is showing a bullish crossover.
- 5-DMA at 86.46 is immediate support. Break below could see drag upto 85.33 (20-DMA).
- Bullish invalidation on close below 100-DMA at 84.40.
Support levels - 86.45 (5-DMA), 86, 85.33 (20-DMA)
Resistance levels - 87.30 (trendline), 88.17 (Feb 16 high), 88.70 (weekly 200-SMA)
Recommendation: Good to go long on breakout above 87.30, SL: 86.45, TP: 88/ 88.20/ 88.70
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 112.624 (Bullish), while Hourly JPY Spot Index was at -97.1826 (Bearish) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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