- AUD/JPY faces rejection at major trendline resistance at 84.80, bias higher.
- The pair is trading in a symmetric triangle pattern and break above 84.80 will likely see test of 85.62 (61.8% Fib of 88.17 to 81.48 fall).
- On the flipside, we see strong support at 83 levels which is converged 23.6% Fib and 20-DMA.
- Weakness only on break below 83 levels. Next major support below 83 lies at 81.10 (trendline).
- Markets focus on RBA June monetary policy meeting minutes scheduled to be released on June 20 for further direction.
- Meanwhile, RBA Gov Philip Lowe said that he remains optimistic about the economic and financial condition of the country in the foreseeable future.
- However, Lowe warned that political opposition to reform could condemn Australia to a slowdown in growth.
Support levels - 84.04 (38.2% Fib of 88.17 to 81.48 fall), 83.83 (5-DMA), 83.07 (23.6% Fib and 20-DMA)
Resistance levels - 84.80 (trendline), 84.83 (50% Fib), 85, 85.62 (61.8% Fib)
Recommendation: Good to go long on break above 84.85, SL: 84.40, TP: 85/ 85.60/ 85.75/ 86
