FxWirePro: AUD/JPY edges lower from 4-week highs at 86.49, bias higher, good to go long on dips

• AUD/JPY hits 4-week high at 86.49 as upbeat Australia jobs data buoys Aussie.
   
• The ABS reported earlier today that the Australian economy added 61.6K jobs in November, beating consensus at 18K.
   
• The pair has shown a decisive break above 200-DMA at 85.85 and we see scope for further upside.
   
• Technical studies are biased higher, RSI above 50 and gaining further traction.
   
• Momentum studies bullish and we see +ve DMI dominance with ADX above 25 levels and rising.
   
• Next bull target lies at 87 (converged 100-DMA and falling trendline). Bearish invalidation on retrace below 200-DMA.

Support levels - 85.85 (200-DMA), 85.75 (converged 5-DMA and 23.6% Fib), 85.16 (20-DMA)

Resistance levels - 86.62 (38.2% Fib retrace of 90.305 to 84.349 fall), 87.09 (100-DMA), 88.03 (61.8% Fib)

Recommendation: Good to go long on dips around 86.20, SL: 85.80, TP: 86.60/ 87/ 88.03

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 95.4485 (Bullish), while Hourly JPY Spot Index was at 93.9671 (Bullish) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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