FxWirePro: AUD/JPY holds cloud support, break above 55-EMA to see further upside

AUD/JPY chart - Trading View 

AUD/JPY was trading 0.28% higher on the day at 68.73 at around 10:15 GMT.

The pair has bounced off daily cloud support and formation of Dragonfly Doji on Monday's candle has raised scope for further upside.

Price action is now capped between 21 and 5 EMAs. Breakout will provide a clear directional bias.

GMMA indicator shows major and minor trend have gone neutral. Volatility is also low and shrinking.

Sideways grind to continue for now.Whipsaws around 55-EMA likely. Breakout above 110-EMA with support from indicators will take the pair higher. 

On the flipside, weekly charts shows price action was rejected at 21W EMA. Break below daily cloud will support further bearishness.

Support levels - 68.46 (21-EMA), 68.01 (cloud top)

Resistance levels - 68.93 (55-EMA), 70.15 (21W EMA)