- AUD/JPY breaks above 5-DMA at 84.42, extends bullish momentum.
- The pair is on track to test 85, but finds stiff resistance by 20-DMA at 85.25.
- Further bullishness seen only on break above 20-DMA.
- Technical studies at the moment are inconclusive. Stochs remain at oversold and MACD continues to support downtrend.
- We would wait for the following confirmation signals to initiate long trade:
- Break above 20-DMA.
- Stochs rollover from oversold territory.
- MACD trend reversal.
- On the flipside, break below major trendline support at 84 could see resumption of downside.
- Support levels - 84.42 (5-DMA), 84 (trendline), 83.87 (Dec 26 low)
- Resistance levels - 85.25 (20-DMA), 85.30 (Dec 22 high), 85.75 (Dec 21 high)
FxWirePro's Hourly AUD Spot Index was at 110.763 (Highly bullish), while Hourly JPY Spot Index was at -85.4192 (Bearish) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
