- Yen remains subdued on fading political uncertainty in the US, supporting AUD/JPY higher.
- The pair has broken resistance at 20 day moving average at 85.62, bias higher.
- Technical studies are bullish and we see scope for test of 200-DMA at 85.89.
- RSI and Stochs are biased higher and we see a bullish MACD crossover on signal line.
- 200-DMA will be pivotal, breakout could see further upside, scope then for test of 38.2% Fib at 86.93.
- On the other side, rejection at 200-DMA could see resumption of weakness.
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-retraces-above-85-handle-scope-for-further-upside-200-DMA-at-8590-in-sight-1034016) is approaching TP1.
Recommendation: Bias higher. Hold for 200-DMA. Watch out for break above for further upside.
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