FxWirePro: AUD/JPY tests 55-EMA resistance, risk-reset could support bullish momentum

AUD/JPY Chart - Trading View 

AUD/JPY was trading 0.46% higher on the day at 68.59 at around 04:30 GMT after closing 0.65% higher in the previous session.

Aussie remained bid despite weaker-than-expected China Q1 GDP. Renewed hopes for coronavirus treatment support the antipodeans. 

STAT news report that Gilead Sciences' experimental drug 'Remdesivir' is seeing rapid recoveries in fever and respiratory symptoms associated with coronavirus. 

Data released earlier on Friday showed China Q1 GDP contracted 6.8% y/y versus expectations for a 6.5% decline.

Retail Sales tanked 15.8% y/y in March compared to expectations for a 10% decline. Industrial Production also contracted by 1.1% but bettered estimates of a 7.3% drop. 

AUD/JPY has bounced off 21-EMA support on the daily charts. Intraday charts show bullish shift in trend as price action breaks above 200 SMA on the 4-hourly charts.

Oscillators are bullishly aligned. GMMA indicator shows major trend in the pair is neutral and minor trend is slowly turning bullish again.

The pair finds stiff resistance at 55-EMA and daily cloud. Breakout there will buoy bulls.

Risk-reset across markets could see fading demand for safe-haven yen, supporting the pair higher. 

PBOC interest rate decision in the upcoming week will be a major driver for price action. 

Support levels - 68.20 (50% Fib), 68.11 (200H MA), 67.60 (21-EMA)

Resistance levels - 69 (55-EMA), 69.75 (Upper BB), 70.17 (61.8% Fib)

Guidance: Stay long on decisive breakout at 55-EMA, SL: 68.50, TP: 69.75/ 70.15