FxWirePro: AUD/JPY struggles to hold major trendline breakout, scope for downside on possible 'Bullish Cypher' formation

• AUD/JPY upside falters at major trendline resistance, further upside only on decisive breakout above.
   
• The pair slips below 90 handle after hitting highs of 90.304 (levels unseen since Dec 2015).
   
• We see scope for downside on possible 'Bullish Cypher' formation on the daily charts.
   
• That said, technical studies on weekly charts are highly bullish, RSI strong above 50 levels and biased higher.
   
• Decisive breakout above trendline resistance at 89.90 could see gains upto 61.8% Fib retracement at 91.22.

Support levels - 88.93 (5-DMA), 88, 87.91 (weekly 5-SMA), 87.70 (20-DMA)

Resistance levels - 90 (trendline), 90.48 (Dec 2015 high), 90.72 (Nov 2015 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-extends-break-above-daily-cloud-eyes-major-trendline-resistance-at-90-stay-long-906538) has hit TP1&2.

Recommendation: Book partial profits at highs, raise trailing stop to 89, hold for upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -84.2647 (Bearish), while Hourly JPY Spot Index was at -45.2304 (Neutral) at 0610 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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