• FxWirePro: AUD/JPY completes inverted 'head and shoulders' pattern, good to go long on breakout at 89.10

    Source: FxWire Pro - Technicals / 18 Jan 2018 04:32:46   Eastern Standard Time

    • Aussie buoyed by upbeat Australia labor data released earlier today, but weak China retail sales keeps lid on upside.
    • AUD/JPY forms spinning top on the daily candle, but remains above 5-DMA support.
    • The pair has completed an inverted 'Head and Shoulders' pattern 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 88.02 is major support and we see bullish invalidation on break below.

    Support levels - 88.23 (5-DMA), 88.03 (converged 61.8% Fib and 20-DMA), 87.27 (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

    FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 103.851 (Bullish), while Hourly JPY Spot Index was at -92.7345 (Bearish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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