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FxWirePro: AUD/JPY consolidates below 21-EMA, 'bullish divergence' keeps scope for upside

AUD/JPY chart - Trading View 

AUD/JPY has been extending sideways below 21-EMA which is capping upside in the pair.

The pair was trading 0.19% higher on the day at 66.646 at around 09:20 GMT, with session highs at 67.270 and lows at 65.988.

China’s official Manufacturing and Non-Manufacturing PMIs for March released earlier on Tuesday surprised markets with upbeat numbers.

The headline manufacturing PMI stood at 52.00, beating forecast at 45 while the Non-Manufacturing PMI rose to 52.3 compared to 37.8 expected.

Upbeat China PMI data are likely to ease fears regarding a deeper coronavirus-led economic slowdown across the globe, thereby supporting the pair higher.

Momentum studies are bullish. Bullish divergence on Stochs and RSI adds to the bullish bias.

Break out at 21-EMA could fuel more gains. Scope for test of 61.8% Fib at 70.17. Rejection at 21-EMA negates any bullish bias.
 

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