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FxWirePro: AUD/JPY holds gains above 21-EMA, further upside on cards

AUD/JPY chart - Trading View 

AUD/JPY was trading 0.35% higher at 80.61 at around 10:25 GMT, outlook is bullish.

Risk sentiment improved on Monday as Evergrande contagion fears recede. Markets hopeful that Beijing will contain Evergrande fallout.

Bank of Japan (BoJ) Gov Haruhiko Kuroda said on Monday the central bank would continue to focus on cushioning the economic blow from the coronavirus pandemic.

He said that the uncertainty over economic outlook still lingers. But, added that the economy's recovery would become clearer as the impact of the pandemic subsides.

The pair has resumed upside after a brief pause on Friday's trade, is on track to test 55-EMA at 80.83.

Price action is above 200H MA and GMMA indicator on the intraday charts shows major and minor trends are strongly bullish.

Momentum is bullish and volatility is high. Stochs show bullish rollover from oversold levels and RSI is above 50 mark.

Support levels - 80.52(20-DMA), 80.26 (21-EMA), 79.95 (5-DMA)

Resistance levels - 80.83 (55-EMA), 80.91 (38.2% Fib), 81.40 (110-EMA)

Summary: AUD/JPY is set to resume upside after brief pause at 21-EMA support. Technicals are biased higher, scope for test of 81 levels.

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