FxWirePro: AUD/JPY takes out 0.72 handle, finds major hurdle at 55W EMA (72.78)
AUD/JPY chart - Trading View
AUD/JPY surges over 1% on the day to hit fresh 14-week highs at 72.64. Bias strongly bullish.
Upbeat China Caxin data and rising risk appetite have supported gains in the pair.
China Caixin Manufacturing PMI has posted an impressive jump back into expansionary territory, at 50.7.
The pair has broken above 200-DMA and is on track to test next major hurdle at 55W EMA at 72.78.
Traders await RBA's monetary policy decision (scheduled Tuesday 01:30 GMT) and policy statement for fresh impetus.
55W EMA has capped upside since Feb 2018 and decisive break above will confirm upside continuation.
Failure at 55W EMA and retrace below 200-DMA will negate further upside bias.
Support levels - 72.08 (200-DMA), 71.72 (5-DMA), 70.40 (110-EMA)
Resistance levels - 72.78 (55W EMA), 73, 74.64 (88.6% Fib)