- AUD/JPY has broken major trendline resistance at 87.30, bias remains higher.
- The pair is on track to test weekly 200-SMA at 88.70. Violation there could see further upside.
- Next major bull target above weekly 200-SMA lies at 91.22 (61.8% Fib retrace of 102.84 to 72.43 fall).
- Technical studies support further gains in the pair. RSI strong at 67 with room for further upside.
- MACD shows bullish crossover on signal line, but Stochs are at overbought levels so caution advised.
- We see bullish invalidation on close below trendline resistance turned support at 87.30.
Support levels - 87.30 (trendline), 87, 85.89 (weekly 5-SMA)
Resistance levels - 88, 88.17 (Feb 16 high), 88.70 (weekly 200-SMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-capped-at-major-trendline-resistance-at-8730-good-to-go-long-on-breakout-above-796091) is progressing well, approaching TP1.
Recommendation: Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 125.16 (Bullish), while Hourly JPY Spot Index was at 49.9232 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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