- AUD/JPY edges lower from 4-week highs at 83.37, trades 0.25% lower on the day.
- Price action has broken above 23.6% Fib at 82.52, bias is bullish.
- Momentum studies support upside and RSI shows strength above 50 levels.
- We see bullish divergence on RSI and Stochs which keeps scope for further gains.
- Immediate resistance lies at 55-EMA at 83.48, break above could see further upside.
- Next bull target above 55-EMA lies at 84.52 (Mar 13 high) ahead of 85.13 (100-DMA).
- Close below 5-DMA could see test of 20-DMA at 81.89. Violation at 20-DMA invalidates bullish bias.
Support levels - 82.54 (5-DMA), 81.89 (20-DMA), 81.25 (Mar 19, Apr 4 low)
Resistance levels - 83, 83.48 (55-EMA), 83.78 (38.2% Fib), 85.13 (100-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-retraces-dip-below-20-DMA-hovers-around-236-Fib-bias-higher-1240313) has hit TP1.
Recommendation: Book partial profits at highs. Watch out for break above 55-EMA for further upside.
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