AUD/JPY chart - Trading View
- AUD/JPY pauses upside at 200-DMA resistance, bullish technicals keep scope for upside.
- Price action has bounced off daily cloud and breakout at 200-DMA will propel the pair higher.
- Upbeat risk sentiment and positive news surrounding China favor commodity-linked currencies.
- Riskier assets cheer the US' decision to soften its stance on China's subsidies in a bid to secure a deal next month.
- Technical indicators support upside. Bollinger bands are widening, momentum is with the bulls.
- Next major resistance above 200-DMA lies at 55-W EMA at 80.71. Break above eyes major trendline resistance at 81.80.
- On the flipside, rejection at 200-DMA will see test of 5-DMA at 79.76. Further weakness will see drag till daily cloud at 78.66.
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-on-track-to-test-200-DMA-at-8025-good-to-go-long-on-dips-1525010) has hit TP1.
Recommendation: Book partial profits at highs. Watch out for breakout above 200-DMA for further upside.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
