- AUD/JPY edges lower from session highs at 82.53, but finds strong support at 82.11 levels.
- The pair is currently holding above 20-DMA at 82.12 and we see weakness only on decisive break below.
- The demand for the safe-haven Yen hit by easing trade war concerns after the US offered to negotiate with China.
- Upside has tested 23.6% Fib at 82.52, break above to see further upside.
- We evidence bullish divergence on RSI and Stochs which raises scope for further upside.
- 50-DMA at 83.73 is next bull target above 23.6% Fib. While close below 5-DMA could invalidate bullish bias.
Support levels - 82.12 (20-DMA), 81.83 (5-DMA), 81, 80.50 (Mar 23 low)
Resistance levels - 82.52 (23.6% Fib), 83, 83.73 (50-DMA)
Recommendation: Good to stay long on dips, SL: 81.80, TP: 82.50/ 83/ 83.70
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -15.9536 (Neutral), while Hourly JPY Spot Index was at -70.1414 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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