- AUD/JPY pauses three-day losing streak, yen depressed as risk-on returns in the markets.
- Moderate gains seen in the oil benchmarks could extend support to the Aussie and AUD/JPY could see further upside.
- Technically, the pair was rejected at major trendline resistance at 85 levels.
- Price action has dipped in daily cloud and we see scope for test of 200-DMA at 83.37 levels.
- Violation at 200-DMA could see drag till 82.25 (rising trendline).
- Technical indicators are only mildly bearish, Stochs have rolled over from overbought levels, but RSI is biased higher and holds above 50 levels.
- We would advise trading with tight stop loss.
Support levels - 83.37 (200-DMA), 83.23 (20-DMA), 83, 82.16 (38.2% Fib of 72.437 to 88.176 rally)
Resistance levels - 84.26 (5-DMA), 84.46 (23.6% Fib), 84.95 (trendline)
Recommendation: Short rallies around 84.25, SL: 84.55, TP: 83.40/ 83.25/ 82.20
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -78.4358 (Neutral), while Hourly JPY Spot Index was at -59.1299 (Neutral) at 0415 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.
