FxWirePro: AUD/JPY pauses five-day bullish streak, outlook remains bullish

Chart - Courtesy Trading View 

Spot Analysis:

AUD/JPY was trading 0.09% lower on the day at 94.21 at around 06:25 GMT

Previous Week's High/ Low: 91.04/ 89.23

Previous Session's High/ Low: 94.38/ 92.84

Fundamental Overview:

Australia’s AiG Performance of Construction Index eased to 50.4 versus 55.9 in May.

Aussie Home Loans and Investment Lending for Homes for April, down -5.8% and -4.8% versus 0.9% and 2.9% respective priors.

Australia’s Services PMI for May rose beyond the 53.0 expected and previous readings to 53.2. Composite PMI also grew to 52.9 from 52.5 prior.

A 25 basis point rate hike by the the Reserve Bank of Australia is fully priced in by the markets at its June 7 meeting.

A hawkish surprise could boost upside for the Australian dollar. 

Technical Analysis:

- AUD/JPY cloud break out raises scope for upside in the pair

- MACD and ADX support gains in the pair

- Momentum is bullish, Stochs and RSI are biased higher

- GMMA indicator shows major and minor trend are bullish

Major Support and Resistance Levels:

Support - 93.16 (5-DMA), Resistance - 97.40 (Upper W BB)

Summary: AUD/JPY is consolidating cloud breakout, outlook remains bullish. Scope for refreshing yearly highs above 95.74.