- AUD/JPY is extending gains above 84 handle after breakout at 20-DMA resistance.
- Technical studies are biased higher. RSI has shown a rollover from oversold levels.
- Stochs are biased higher and MACD is showing a bullish crossover on signal line.
- Further, we see bullish divergence on Stochs which raises scope for further upside in the pair.
- The pair is on track to test 85 levels (4H 200-SMA). Breakout there could see next major resistance at 86.18 (61.8% Fib).
- On the flipside, 20-DMA is strong support at 83.56. Break below could see weakness.
Support levels - 83.56 (20-DMA), 83.47 (5-DMA), 83
Resistance levels - 84.39 (38.2% Fib), 84.86 (4H 200-SMA), 85, 86.18 (61.8% Fib)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-breaks-above-20-DMA-good-to-go-long-on-dips-1195769) is progressing well.
Recommendation: Bias higher, stay long for targets.
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