AUD/JPY breaks major resistance at 86.75, good to long dips
AUD/JPY has broken major trendline resistance at 86.75, eyes 20-DMA at 87.65.
Aussie remains bid against JPY as risk sentiment stabilizes amid fading North Korea tensions and as Australia wage inflation numbers matched estimates.
Data released earlier today showed Australia second quarter wage price index came-in as expected at 1.9% y/y and 0.5% q/q.
Technical indicators have turned bullish. Stochs have rolled over from oversold levels and RSI is biased north.
The pair finds major trendline support at 85.75, we see weakness only on break below.
Violation at 20-DMA could see further upside. Bullish invalidation on break below 85.75.
Support levels - 86.39 (converged 50-DMA & 38.2% Fib retrace of 81.48 to 89.42 rally), 86, 85.75 (rising trendline)
Resistance levels - 87.55 (23.6% Fib), 87.65 (20-DMA), 88
Good to go long on dips around 86.80/90, SL: 86.35, TP: 87.55/ 87.65/ 88
Aussie remains bid against JPY as risk sentiment stabilizes amid fading North Korea tensions and as Australia wage inflation numbers matched estimates.
Data released earlier today showed Australia second quarter wage price index came-in as expected at 1.9% y/y and 0.5% q/q.
Technical indicators have turned bullish. Stochs have rolled over from oversold levels and RSI is biased north.
The pair finds major trendline support at 85.75, we see weakness only on break below.
Violation at 20-DMA could see further upside. Bullish invalidation on break below 85.75.
Support levels - 86.39 (converged 50-DMA & 38.2% Fib retrace of 81.48 to 89.42 rally), 86, 85.75 (rising trendline)
Resistance levels - 87.55 (23.6% Fib), 87.65 (20-DMA), 88
Good to go long on dips around 86.80/90, SL: 86.35, TP: 87.55/ 87.65/ 88
Comment:
TP1 hit.