AUDJPY - Bullish above 87.35
AUDJPY – This week’s low of 85.61 was rejected and the pattern for trading since this base has been for intraday dips to be bought. This resulted in AUDJPY posting a new eight-month high of 87.73 yesterday. There is no indication that this upward pressure is stalling but with momentum indicators showing the lack of strength in the trend we would recommend caution. In view of these facts our call today is Cautiously Bullish above 87.35.
The profit targets are 88.50, then 89.00 and then towards 90.05, the three-year high.
The risk to this call however would be with selling through a stop at 87.35, a break of the trend of higher lows.