FxWirePro: AUD/JPY breaks above 5-DMA, on track to test 87 handle, stay long

• AUD/JPY fails to break below major trendline support at 85.55, intraday bias higher.
   
• AUD/JPY extends gains to flirt with 5-day highs at 86.63 as BOJ squashes tapering hopes.
   
• The pair has broken above 5-DMA resistance at 86.04, on track to test 87 handle.
   
• Yen slumped across the board after the BOJ crushed markets’ expectations for tapering QE at its next policy review meeting scheduled next week.
   
• The BoJ announced JGB-buying plans and increased bond purchases in the 5-10 year maturity range.
   
• Support levels - 86.05 (5-DMA), 85.55 (trendline), 85.0 (Jan 17 low), 85.05 (50-DMA)
   
• Resistance levels - 87 (trendline), 87.53 (Dec 12 high), 87.64 (50% Fib retrace of 102.84 to 72.43 fall)
   

Recommendation: Good to go long on dips around 86.40, SL: 86, TP: 87/ 87.50
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FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -79.3328(Bearish), while Hourly JPY Spot Index was at -55.9374 (Bearish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.