FxWirePro: AUD/JPY struggles at 200-month MA, outlook bullish

AUD/JPY chart - Trading View 

Spot Analysis:

AUD/JPY was trading 0.13% lower on the day at 84.76 at around 06:40 GMT

Previous Session's High/Low - 84.93/ 84.24

Previous Week's High/Low - 85.00/ 83.50

Fundamental Overview:

The aussie ignores RBA's quarterly Monetary Policy Statement and upbeat Chinese PMI and trade data.

In its latest quarterly Monetary Policy Statement the Reserve Bank of Australia (RBA) remained committed to maintaining a highly accommodative monetary policy until at least 2024. 

The central bank expected a pick -up in inflation and wage growth, and revised GDP higher to 4.34 in 2021 and 3.05 for the year 2022. 

On the data front, Australia Service PMI rose to 61.0 in April from 58.7. While China's PMI data improved to 56.3, trade surplus expanded to USD 42.85 billion in April, far above the market expectations of USD 28.1 billion.

Technical Analysis:

- GMMA indicator shows major and minor trend are bullish

- Price action is above daily cloud and major moving averages

- MACD and ADX support upside in the pair

- Momentum studies are bullish, Stochs and RSI are biased higher

Major Support and Resistance Levels:

Support - 84.60 (5-DMA), 84.09 (20-DMA) 83.50 (Previous week's low)

Resistance - 84.72 (200-month MA), 85, 86.16 (Upper W BB)

Summary: AUD/JPY trades pivotal at 200-month MA. Aussie fails to benefit from upbeat data. Technical bias is tilted bullish. Decisive break above 200-month MA required for upside continuation.