FxWirePro: AUD/JPY set to resume upside momentum, breakout above 200-month MA to propel the pair higher

AUD/JPY chart - Trading View 

AUD/JPY was trading 0.45% higher on the day at 84.64 at around 12:00 GMT, outlook bullish.

The Australian dollar was buoyed on upbeat economic data and rising commodity prices.

Data released earlier today showed the Australian Construction Output rose 2.4% in Q1, beating forecasts at 2.2%. 

Meanwhile, the Westpac- Melbourne Institute Leading Economic Index grew at 0.2% in April, adding to the upbeat sentiment.

Further, rising commodity prices, which are an indication of a rebound in the economy, added to the optimism.

On the other side, the Japanese government slashed its economic view for the first time in three months, weighing on the yen.

Japan ruling party heavyweight calls for $239 billion extra budget to support the economy. This extra push on the BOJ for easy policy likely to drive the JPY weaker.

AUD/JPY poised for upside resumption. The pair has been capped at 200-month MA from the past 4 months. Watch for decisive breakout above to fuel further gains.

Next major bull target above 200-month MA (84.72) lies at 90.30 (2017 high). 55-EMA and daily cloud offer strong support, break below will change near-term dynamics.