- AUD/JPY bulls in-charge, hit fresh multi-month highs at 89.67, levels unseen since Dec 2015.
- The major now finds next trendline resistance is seen at 90, break above will see further gains.
- Next bull target above 90 levels lies at 91.22 (61.8% Fib retracement of 102.844 to 72.437 fall).
- 5-DMA support at 88.92 is immediate support, we see minor weakness on break below.
- On the upside the pair is testing stiff resistance at 89.35, further upside only on break above.
- Focus on BOJ policy decision due later this week. The Bank of Japan is expected to leave monetary policy unchanged.
- Focus will be on Governor Haruhiko Kuroda's press conference for cues about the economy.
Support levels - 88.93 (5-DMA), 88, 87.91 (weekly 5-SMA), 87.70 (20-DMA)
Resistance levels - 90 (trendline), 90.48 (Dec 2015 high), 90.72 (Nov 2015 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-extends-break-above-daily-cloud-eyes-major-trendline-resistance-at-90-stay-long-906538) has hit TP1.
Recommendation: Bias higher, stay long.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 68.1476 (Bearish), while Hourly JPY Spot Index was at 42.837 (Neutral) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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