- Aussie buoyed by upbeat Australia labor data released earlier today, but weak China retail sales keeps lid on upside.
- AUD/JPY forms spinning top on the daily candle, but remains above 5-DMA support.
- The pair has completed an inverted 'Head and Shoulders' pattern on the daily charts.
- Major resistance lies at 89.09 (double top), AUD/JPY pivotal around 78.6% Fib.
- Breakout at 89.10 levels to see test of 88.6% Fib at 89.62 ahead of 90.30 (Sept 21 high).
- 20-DMA at 88.02 is major support and we see bullish invalidation on break below.
Support levels - 88.23 (5-DMA), 88.03 (converged 61.8% Fib and 20-DMA), 87.27 (100-DMA)
Resistance levels - 89.08 (double top), 89.62 (88.6% Fib), 90, 90.30 (Sept 21 high)
Recommendation: Good to go long on breakout above 89.10, SL: 88.20, TP: 89.60/ 90/ 90.30
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 103.851 (Bullish), while Hourly JPY Spot Index was at -92.7345 (Bearish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
