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FxWirePro: AUD/JPY extends recovery from multi-year lows, 83.60 next likely bull target

 

  • 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

 

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