audjpy further potential upside ahead above 79 00 1836342016

AUD/JPY - Technical Outlook (Click to enlarge charts) Since our last medium-term technical outlook/strategy dated on 03 October 2016, the AUD/JPY cross has hit our […]

AUD/JPY - Technical Outlook

(Click to enlarge charts)

Since our last medium-term technical outlook/strategy dated on 03 October 2016, the AUD/JPY cross has hit our first expected target/resistance at 79.19. Please click here for a recap.

Key technical elements remain positive for the cross pair ahead of RBA meeting later at 0330 GMT where market consensus is expecting a no rate cut on its current benchmark cash rate at 1.5%..

Medium-term Key Levels (1 to 3 weeks)

Intermediate support: 79.51

Pivot (key support): 79.00

Resistances: 81.10/60 & 85.08

Next supports: 76.10

Conclusion

We remain bullish with a tightened medium-term pivotal support at 79.00 for a further potential push up towards the significant resistance zone of 81.10/60 (neckline resistance of the “Double Bottom” and the lower boundary of a long-term descending channel in place since November 2014. Only a clear break above 81.60 (daily close) is likely to open up scope for a further potential rally to target 85.08 next.

However, failure to hold above 79.00 is likely to put the bulls on hold for a decline back to retest the base of the “Double Bottom” at 76.10.

Charts are from eSignal

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