FxWirePro: AUD/JPY spikes above weekly 200-SMA at 88.68 to hit 19-month highs at 88.94, bias higher

• Aussie buoyed on upbeat RBA comments in the monetary policy statement.
   
• AUD/JPY soars 1.26 pct on the day, spikes past weekly 200-SMA to hit 19-month highs at 88.94.
   
• Technical studies support further gains in the pair. RSI on weekly charts strong at 71.
   
• MACD shows bullish crossover on signal line, but Stochs are at overbought levels so caution advised.
   
• We see bullish invalidation on close below trendline resistance turned support at 87.30.
   

Support levels - 88.68 (weekly 200-SMA), 88, 87.30 (trendline), 87, 86.82 (weekly 5-SMA)

Resistance levels - 89, 90.48 (Dec 15 high), 91.23 (61.8% Fib retrace of 102.84 to 72.43 fall)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-capped-at-major-trendline-resistance-at-8730-good-to-go-long-on-breakout-above-796091) has hit all targets.

Recommendation: Book full profits at highs. Good to go long on close above weekly 200-SMA at 88.68.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 81.0495 (Slightly bullish), while Hourly JPY Spot Index was at -66.7812 (Neutral) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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