FxWirePro: AUD/JPY breaks major trendline resistance at 85, good to go long on dips

• AUD/JPY has broken major trendline resistance at 85 levels and has hit new 3-month highs at 85.48.
   
• Technical indicators in the pair are bullish and MACD supports trend higher. Price action also nicely converging with RSI and Stochs.
   
• The pair finds strong support at 84.45 (nearly converged 100-DMA and cloud top).
   
• Upside in the pair intact as long as pair holds above 84.45 levels.
   
• Next immediate target for bulls lies at 85.62 (61.8% Fib retrace of 88.176 to 81.486 fall).
   

S​​upport levels - 85 (trendline), 84.70 (5-DMA), 84.45 (nearly converged 100-DMA and cloud top)

Resistance levels - 85.62 (61.8% Fib), 85.76 (Mar 31 high), 86, 86.74 (78.6% Fib)

TIME  TREND INDEX  OB/OS INDEX   

1H          Bullish                Neutral      

4H          Bullish                Overbought      

1D          Bullish                Nearing overbought        

1W         Bullish                Neutral     

Recommendation: Good to go long on dips around 85.20, SL: 84.70, TP: 85.60/ 86/ 86.70

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 68.1476 (Bearish), while Hourly JPY Spot Index was at 42.837 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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