- The Japanese Yen is temporarily out of favour on receding tensions between US and China over trade tariffs.
- AUD/JPY edges above 1H 200-SMA, we see scope for further upside.
- Price action finds strong trendline resistance at 81.90, breakout there could see major upside.
- Long-term price action is edging lower in a downward channel. Decisive breakout at 20-DMA could see further upside.
- Further, we evidence bullish divergence on RSI and Stochs which raises scope for further upside.
Support levels - 81.33 (5-DMA), 81, 80.50 (Mar 23 low)
Resistance levels - 81.90 (trendline), 82.33 (20-DMA), 82.57 (23.6% Fib)
Recommendation: Good to go long on breakout at 81.90, SL: 81.30, TP: 82.30/ 82.50/ 83
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 40.2114 (Neutral), while Hourly JPY Spot Index was at -117.355 (Bearish) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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