FxWirePro: AUD/JPY extends break above daily cloud, trendline resistance at 89.90 in sight, stay long

• AUD/JPY extends breaks above daily Ichimoku cloud, hits new 6-week highs at 88.48.
   
• Technical studies are bullish, we see scope for further upside.
   
• RSI above 50, biased higher. Stochs are in overbought zone so some caution advised.
   
• The pair finds stiff resistance at weekly 200-SMA at 88.45, breakout above likely to see further gains.
   
• Technical studies on weekly charts are bullish, RSI and Stochs are biased higher.
   
• Break above 200-W SMA raises scope for test of trendline resistance at 89.90.
   
• On the downside, 20-DMA is strong support, we see weakness only on break below.

Support levels - 87.94 (cloud top), 87.75 (5-DMA), 87.10 (20-DMA)

Resistance levels - 88.70 (Aug 1 high), 89, 89.42 (July 27 high), 89.90 (trendline)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-breaks-above-daily-cloud-eyes-trendline-resistance-at-8990-894355) has hit TP1.

Recommendation: Hold for further upside.

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