- AUD/JPY halts 2-day losing streak, edges higher after holding major support by 20-DMA.
- The Japanese yen hit by somewhat bigger-than-expected Japanese trade deficit figures.
- The data released today showed a rise in the Japanese trade deficit to JPY 1,086.9 billion in January.
- Intraday bias is neutral, we see weakness only on break below 20-DMA at 86.40.
- On the flipside, 5-DMA at 87.20 is major resistance, only decisive break above could see a resumption of upside.
- Technical studies are inconclusive. Long-term upward trend still intact, we see no signs of reversal.
Support levels - 86.40 (20-DMA), 85.78 (50-DMA), 85.45 (cloud top)
Resistance levels - 87.20 (5-DMA), 87.53 (Dec 15, 2016 high), 88.18 (Feb 16, 2017 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bullish Neutral
1D Neutral Neutral
1W Neutral Neutral
Recommendation: Watch out for break below 20-DMA at 86.40 to go short, target 85.78/ 85.50
