FxWirePro: AUD/JPY struggles to close above daily cloud, bias higher, stay long

• AUD/JPY failed to hold break above cloud top on Wednesday's trade, edges lower to close within the daily cloud.
   
• Price action on the day has been contained below cloud top resistance at 87.47.
   
• Technical studies are bullish, RSI above 50, Stochs biased higher, MACD is showing a bullish crossover.
   
• Breakout above daily cloud could see test of rising trendline resistance at 89.75.
   
• Upbeat Australia Capex data released earlier today could lend support. Australia private capex rose 0.8% in Q2, beating estimates of 0.3%.
   
• The pair has shown decisive break above 20-DMA and is holding 5-DMA support at 87.05 on the downside.
   
• We see weakness only on break below 20-DMA at 86.77. Retrace upto 200-DMA at 85.33 then likely.

Support levels - 87.04 (5-DMA), 86.77 (20-DMA), 86.44 (23.6% Fib retrace of 76.78 to 89.42 rally)

Resistance levels - 87.47 (cloud top), 88.15 (Feb 15th high), 88.70 (Aug 1 high), 89.75 (trendline)

Call update: We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-breaks-above-20-DMA-on-track-to-test-trendline-resistance-at-8970-stay-long-874160).

Recommendation: Bias higher. Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -64.0943 (Neutral), while Hourly JPY Spot Index was at -94.044 (Bearish) at 1045 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest