FxWirePro: AUD/JPY extends 'Triangle Breakout', hits 2-month highs at 88.74, bias higher

• AUD/JPY is extending gains after 'Symmetric Triangle' breakout, bias still higher.
   
• The pair hit fresh 2-month highs at 88.74 before paring some gains to currently trade around 88.32 levels.
   
• Technical studies are bullish, RSI above 50, biased higher and MACD supports uptrend.
   
• However, Stochs are in overbought zone so some caution advised.
   
• We see stiff resistance at weekly 200-SMA at 88.45, only close above will see further gains.
   
• Break above 200-W SMA raises scope for test of trendline resistance at 89.90.
   
• On the downside, 20-DMA is strong support, we see weakness only on break below.

Support levels - 88, 87.90 (5-DMA), 87.55 (cloud top), 87.43 (50-DMA)

Resistance levels - 88.74 (Session high), 89, 89.42 (July 27 high), 89.90 (trendline)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-breaks-above-daily-cloud-eyes-trendline-resistance-at-8990-894355) has hit TP1&2.

Recommendation: Hold for further upside.

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