- Aussie continued gaining traction despite of weaker than expected Chinese macro data.
- Gains in commodity space, especially copper, also lending support to the Aussie.
- AUD/JPY up 0.75% on the day, trading at 84.32, intraday bias higher.
- The pair is hovering around 50-DMA at 84.26, decisive break above will see further upside.
- Close below 5-DMA at 83.98 will negate upside bias. Scope then for weakness upto 83 levels.
Support levels - 84.04 (38.2% Fib of 88.176 to 81.486 fall), 83.98 (5-DMA), 83.34 (20-DMA), 83.06 (23.6% Fib)
Resistance levels - 84.83 (50% Fib), 85, 85.62 (61.8% Fib)
Recommendation: Good to go long on break above 50-DMA, SL: 83.35, TP: 84.85/ 85/ 85.60.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 166.916 (Bullish), while Hourly JPY Spot Index was at -116.801 (Bearish) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
