FxWirePro: AUD/JPY finds stiff resistance at 70.35, break above targets 200-DMA at 72.19

AUD/JPY chart - Trading View 

AUD/JPY was trading 0.55% higher on the day at 70.02 at around 06:30 GMT.

The pair is extending gains for the 3rd straight session, scope for further upside.

Risk reset across market dents safe haven demand for the yen, supports pair higher. 

Momentum studies are bullish, RSI is above 60 and biased higher. Volatility is rising as evidenced by widening Bollinger bands.

Price action has bounced off strong support at daily cloud, weakness only on break below.

The pair hovers around 61.8% Fib retracement at 70.17. Strong resistance lies at 70.35 (converged 110-EMA and trendline).

Break above 70.35 will take the pair higher to test 200-DMA at 72.19. 200-DMA breakout will open upside.

Australian unemployment figures due on Thursday will be watched along with virus updates for impetus.

Support levels - 68.96 (55-EMA), 68.68 (21-EMA), 67.67 (cloud top)

Resistance levels - 70.17 (61.8% Fib), 70.35 (converged 110-EMA and trendline), 72.19 (200-DMA)