- AUD/JPY is extending recovery from multi-year lows at 79.21, however upside seems to have stalled at 82.80.
- Momentum indicators have turned positive for the pair:
- Stochs have rolled over from oversold territory with a bullish crossover
- MACD line shows a bullish crossover on the signal line
- RSI have nicely bounced-off 30 levels and biased higher
- 82 is strong support for the pair on the downside, breaks below could take the pair to 80.20 levels.
- FOMC and BoJ up next week are major risk events for the pair, expectations for easing at this meeting adding support to the upside in the cross.
Recommendation: Good to go long in the pair around 82.50/60, SL: 81.80, TP: 83.40/60
