FxWirePro: AUD/JPY struggles at 89 handle, break above major resistance at 89.10 to see further upside

• AUD/JPY is trading in an extremely narrow range struggles to break above 89 handle.
   
• Aussie buoyed by upbeat China Q4 GDP data. China Q4 GDP y/y stayed flat at 6.8 % beating forecast at 6.7 %.
   
• AUD/JPY hit session highs at 89.01, but failed to extend gains. The pair is currently trading at 88.85 level.
   
• We see an inverted 'Head and Shoulders' pattern formed on the daily charts.
   
• Major resistance lies at 89.09 (double top), AUD/JPY pivotal around 78.6% Fib.
   
• Breakout at 89.10 levels to see test of 88.6% Fib at 89.62 ahead of 90.30 (Sept 21 high).
   
• 20-DMA at 88.10 is major support and we see bullish invalidation on break below.

Support levels - 88.45 (5-DMA), 88.10 (20-DMA), 88.03 (61.8% Fib retrace of 90.305 to 87.349 fall), 87.29 (100-DMA)

Resistance levels - 89.08 (double top), 89.62 (88.6% Fib), 90, 90.30 (Sept 21 high)

Recommendation: Good to go long on breakout above 89.10, SL: 88.20, TP: 89.60/ 90/ 90.30

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