FxWirePro: AUD/JPY upswings likely to extend, price, volumes, leading and lagging oscillators move in tandem – Stay long in futures near month

Watch out for more rallies up to 86.379 on break-out above resistance at 81.520 and bullish SMA crossover.

The current prices spike above SMAs, EMAs & channel resistance after testing strong support at 76.175, please be noted that the rising volumes from last two months when price shown upswings which means that bull trend has positive sentiments.

You could see that despite the occurrence of long-legged dojis on monthly while bulls shrug-off these bearish patterns to break above channel resistances on both time frames.

The current prices have gone above SMAs on weekly and 7EMA on monthly terms, please also be advised that the both leading indicators converge to the prevailing upswings.

RSI signals strength in uptrend, while stochastic curves have been indicating healthy buying momentum on both time frames. We see the strength in buying interest confirmed as RSI converging to the corresponding upswings above 66 levels on weekly and above 47 levels on monthly terms.

Additionally, MACD bullish crossover signals uptrend to be extended further in the weeks to come, while 7SMA crosses over 21SMA which is a bullish signal.

Trade tips: Well, as a result of above technical reasoning, we recommend adding longs in futures contracts of mid-month expiries for targets of 85.646 and 86.379 levels but with a strict stop loss at 84.6883 levels.