FxWirePro: AUD/JPY finds strong support at 20-DMA (83.50), weakness only on break below

• AUD/JPY slips lower from fresh 3-week highs at 84.52 hit on Tuesday's trade.
   
• Downside has held strong support at 20-DMA (currently at 83.50) and we see weakness only on break below.
   
• The antipodeans are buoyed from stronger Chinese industrial and fixed asset investment data.
   
• China’s Jan/Feb (combined) retail sales Y/Y came in at +9.7% vs 9.8% expected and compared with 10.2% in the previous month.
   
• Also China's industrial output Y/Y printed at 7.2%, beating expectations at 6.2% and 6.6% in the last month.
   
• The pair has managed to edge higher from session lows at 83.56 and is currently trading at 83.90 levels.
   
• Technical studies are biased higher. RSI has shown a rollover from oversold levels. And we see bullish MACD crossover on signal line.
   
• The pair is on track to test 84.75 levels (4H 200-SMA). Breakout there could see next major resistance at 86.18 (61.8% Fib).
   
• On the flipside, 20-DMA is strong support at 83.50. Break below could see weakness.

Support levels - 83.50 (20-DMA), 83.58 (5-DMA), 83

Resistance levels - 84.39 (38.2% Fib), 84.75 (4H 200-SMA), 85, 86.18 (61.8% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-breaks-above-20-DMA-good-to-go-long-on-dips-1195769) has hit TP1.

Recommendation: Book partial profits at highs. Bias higher, stay long for further upside.

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