- AUD/JPY is extending upside after breaking above daily cloud, bias higher.
- The pair holds 5-DMA support at 88.62, we see minor weakness on break below.
- On the upside the pair is testing stiff resistance at 89.35, further upside only on break above.
- Next major resistance lies at 90 level, break above could see test of 90.48 (Dec 2015 high).
- Focus on BOJ policy decision due later this week. The Bank of Japan is expected to leave monetary policy unchanged.
- Focus will be on Governor Haruhiko Kuroda's press conference for cues about the economy.
Support levels - 88.63 (5-DMA), 87.53 (20-DMA), 87.15 (daily cloud)
Resistance levels - 90 (trendline), 90.48 (Dec 2015 high), 90.72 (Nov 2015 high)
Recommendation: Good to go long on dips around 89/ 89.20, SL: 88.60, TP: 89.35/ 90/ 90.48.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 68.1476 (Bearish), while Hourly JPY Spot Index was at 42.837 (Neutral) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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