FxWirePro: AUD/JPY rebounds from session lows at 87.66, retakes 5-DMA, bias higher

• AUD/JPY rebounds from session lows at 87.66, spikes above 89 handle.
   
• Latest updates on the London tube explosion, show the police declaring the incident as a terror attack.
   
• Demand for the Japanese Yen could resume and thus keep upside in the pair limited.
   
• Technical studies are bullish, RSI above 50, biased higher and MACD supports uptrend.
   
• The pair has broken strong resistance at weekly 200-SMA at 88.45, scope for test of trendline resistance at 89.90.
   
• We see weakness on close below 20-DMA at 87.31. Drag till 200-DMA at 85.51 then likely.

Support levels - 88, 87.90 (5-DMA), 87.55 (cloud top), 87.43 (50-DMA)

Resistance levels - 88.74 (Session high), 89, 89.42 (July 27 high), 89.90 (trendline)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-breaks-above-daily-cloud-eyes-trendline-resistance-at-8990-894355) has hit TP1/2/3.

Recommendation: Book partial profits at highs, raise trailing stop to 88.30, hold for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 35.8078 (Neutral), while Hourly JPY Spot Index was at -176.491 (Bearish) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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