FxWirePro: AUD/JPY holds above 89 handle after gap-up open, bias higher, stay long

• AUD/JPY extends upside for 3rd consecutive week, retakes 89 handle on bullish gap-up open.
   
• The pair is trading a narrow range in the Asian session today, bias remains higher.
   
• Price action has broken above weekly 200-SMA at 88.31, scope for test of channel top at 90.70.
   
• Momentum with the bulls, RSI at 62, bias higher. ADX also supports upside. Stochs are sharply higher.
   
• We see weakness on retrace below 20-DMA at 88.17. Bullish invalidation only on break below daily cloud.

Support levels - 88.60 (5-DMA), 88.17 (20-DMA), 88 87.63 (cloud top)

Resistance levels - 89.07 (upper Bollinger Band), 89.42 (July 27 high), 90, 90.30 (Sept 21 high), 90.70 (trendline)

Recommendation: Good to go long on dips around 88.90/89, SL: 88.10, TP: 89.40/ 90/ 90.30/ 90.70.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -10.597 (Neutral), while Hourly JPY Spot Index was at -84.6221 (Bearish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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