- Hard commodity markets are stable, RBA in a wait-and-see mode, Aussie likely to grind higher.
- On the other side, waning Brexit bets see lesser demand for safe-haven Yen. AUD/JPY extending upside for the 4th consecutive session.
- Technical indicators on the daily charts support upside in the pair, RSI and Stochs are biased higher.
- AUD/JPY finds stiff trendline resistance at 78.35, further upside only on breaks above. Pair could then test 78.74 (20-DMA), 79 and then 79.50 (May 26th highs).
- On the downside 5-DMA at 77.47 offers strong support, break below will find next support at 77.31 (June 21st lows).
Recommendation: Good to go long on breakout above 78.35, SL: 77.75, TP: 78.75/ 79/ 79.50
