FxWirePro: AUD/JPY upside pauses at minor trendline resistance, bias higher, good to long dips

• AUD/JPY has broken a downward spiralling channel with rising volumes and edged higher.
   
• The pair has broken above weekly 100-MA in the previous week.
   
• Upside in price action has currently paused shy of minor trendline resistance at 86.70.
   
• Momentum studies are highly bullish, we see scope for test of 90 levels.
   
• Next major resistance on the upside is seen at 87.64 (50% Fib of 102.84 to 72.43 fall).
   
• 100-DMA at 85.50 is major support on the downside, break below could see test of 84.05 (38.2% Fib).
   

Recommendation: Trade idea: Good to go long on dips around 86, SL: 85, TP: 86.70/ 87/ 87.60
 

Short-term outlook: Long dips, target 87.64/ 90.20/ 91.22. Bullish invalidation below 84 levels.
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FxWirePro's Hourly AUD Spot Index was at 81.248 (Slightly bullish), while Hourly JPY Spot Index was at -120.616 (Highly bearish) at 0550 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.