FxWirePro: Aussie spikes on RBA Stevens speech, AUD/JPY up 20 pips to hit session highs at 85.29

RBA's Glenn Stevens, speaking at the ASIC Annual Forum in Sydney, said there's more room to ease policy than most should a serious downturn occur.

• Stevens said that Australia's economy improving, financial system more resilient and picking up at turn of the year.
   
• Aussie spiked on RBA Stevens speech, AUD/JPY up 20 pips to hit session highs at 85.29, but pares some gains to currently trade at 85.20.
   
• Daily Techs are biased lower, Stochs have rolled over from overbought and MACD line is on the verge of a bearish crossover on signal line.
   
• AUD/JPY sees strong support by daily cloud top at 84.15, weakness to resume on breaks below, test of 84.15 then likely.
   
• On the upside strong resistance is located at 86.25 (trendline joining 86.35 (Jan 5th high), 86.36 (Jan 29th highs).

Resistance Levels:

R1: 85.36 (Mar 18th highs)

R2: 85.40 (Jan 6th highs)

R3: 85.87 (Mar 17th highs)

Support Levels:

S1: 85 (converged 5 & 10 DMAs)

S2: 84.15 (cloud top)

S3: 83.90 (Mar 15th lows)