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FxWirePro: AUD/JPY set to resume upside, 'Golden Cross' to support gains

AUD/JPY chart - Trading View 

AUD/JPY is trading marginally higher on the day and is set to resume upside as the pair holds support at 21-EMA.

A 'Golden Cross' (bullish 50-DMA crossover on 200-DMA) on the daily charts supports gains in the pair.

Analysis of the GMMA indicator shows major trend is strongly bullish and minor trend is turning bullish again.

The Australian dollar remains resilient despite a big miss on Chinese Services PMI. Fresh optimism on the US-China trade front keeps the antipodean supported.

Data released earlier today showed China Caixin/IHS Markit July services PMI printed at 54.1, missing forecasts at 56.8 (vs 58.4 in June).

On the weekly charts the pair has edged above cloud and 110W EMA, on track to test next major hurdle at 61.8% Fib at 78.67.

On the flipside, 21-EMA is strong support at 75.23. Break below will see dip till 50-DMA at 74.60. Bullish invalidation only below 200-DMA.

Support levels - 75.23 (21-EMA), 74.60 (50-DMA), 72.49 (200-DMA)

Resistance levels - 76.87 (Upper W BB), 78.67 (61.8% Fib), 79.91 (200W MA)

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