FxWirePro: AUD/JPY struggles at channel top resistance, buy breakout, target 83 levels

• No lasting market impact was seen from a somewhat positive Australia’s employment report, Aussie bulls largely unimpressed.
   
• Data released earlier today showed that Australia’s employment change came slightly below expectation at 7.9k vs 10k expected and 17.9k prior.
   
• Full time jobs saw an increase of 38.4k vs 0 prior, while part time jobs came at -30.5k vs 17.9k last. 
   
• The participation rate stood at 64.9% vs 64.8%, while the unemployment rate was 5.8 vs 5.7% last.
   
• While the labour market is solid, it is just not sparking wages growth as per prior cycles. Focus now remains on Q2 CPI data on 27th July which is crucial for the RBA and the market.
   
• Japan stimulus hopes triggered a broad based selling in JPY and has set JPY crosses on a recovery mode.
   
• AUD/JPY is extending bounce from channel base and is curently struggling at channel top resistance.
   
• Techs are biased higher, scope for test of 200-DMA at 83.39 on breakout above 80.10.
   
• 50-DMA at 78.45 is strong support on the downside. Below 78.45 next strong support lies at 77.58 (Feb 11 low).
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Recommendation: Buy on breakout above 80.10, SL: 78.45, TP: 81.58/82/83/83.35