Rising channel formation seen on AUD/JPY charts, the pair has been trading within the channel since Sept 2015.
- AUD/JPY has held channel base support on Friday's trade and edged higher, retrace upto 87.94 (38.2% Fib of 90.72-86.21 fall likely)
- RSI on 4H is at 45 and has room to run, Stochs have also rolled over from oversold levels, further gains likely
- Price action has edged above daily cloud top at 86.97, with next hurdle on the upside aligned at 87.42 (5 DMA), and immediate minor support at 86.50 and then at 86.20
Recommendation: Good to buy dips around 86.70, SL: 86.20, TP: 87.90
