JPY slump after surprise BoJ easing took AUD/JPY to session highs at 86. the pair has given up most of the gains and is currently trading at 84.98 levels.
- Strong trendline resistance is seen at 85, and further upside will prevail only if the pair closes above 85 levels.
- Stochs have approached overbought levels, but RSI at 55 is biased north and shows strength with further room to run.
- The pair is currently trading at 85.31, with immediate resistance at 85.40 (Jan 6th highs) and immediate support at 83.65 (38.2% Fib of 90.72 to 79.21 fall)We will be watchful for a close above 85 to go long, then tests of 88 look likely.
Trade recommendation: We would sell rallies in the pair around 85.40, SL: 86, TP: 84.50
