- AUD/JPY resumes upside after brief pause on Friday's trade, intraday bias higher.
- Technical studies support upside in the pair. RSI and Stochs are biased higher.
- Momentum studies bullish and we see +ve DMI dominance with ADX above 25 levels and rising.
- Price action is currently capped between 50 and 200 day moving averages. Breakout needed for further impetus.
- Aussie continues to be supported after release of MYEFO forecasts in which Australia's GDP was raised higher.
- Australia's Real GDP is forecast to grow by 2½ percent in 2017-18 and 3 percent in 2018-19, compared to 2.0 percent achieved in 2016-17.
- Meanwhile, Nominal GDP is forecast to grow by 3½ percent in 2017-18 and 4 percent in 2018-19.
- Break above 50-DMA finds next bull target at 87 (converged 100-DMA and falling trendline). Bearish invalidation on retrace below 200-DMA.
Support levels - 86.03 (5-DMA), 85.84 (200-DMA), 85.75 (23.6% Fib retrace of 90.305 to 84.349 fall)
Resistance levels - 86.49 (50-DMA), 86.62 (38.2% Fib), 87.07 (100-DMA), 88.03 (61.8% Fib)
Call update: We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-edges-lower-from-4-week-highs-at-8649-bias-higher-good-to-go-long-on-dips-1058745).
Recommendation: Hold for targets.
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