AUDJPY continued it’s strong upward move and went as high as 88.00 before closing for the week at 87.80. The high and the closing both were in the resistance zone mentioned by us last to last weekend (please check aud/jpy forecast)
While what we mentioned about the resistance zone for AUDJPY is true but the strong closing without much of immediate consolidation from this resistance zone indicate that we can expect further upward gains towards 89.20 during the coming days. Above 89.20 the resistance should be around 89.60. Near 89.20 the psychological resistance of approaching 90.00 should start coming into the picture and 89.20 to 89.60 ranges should come as a resistance zone from where some downward consolidation may take place.
The above should stand good as long as no immediate break below the recent support near 85.60 take place. Any break of 85.60 should bring some support just blow it near 85.40 or the Kijun line of daily Ichimoku cloud but a break below that will make the short-term outlook neutral. This will represent a decisive break of 22-day EMA as well as the above mentioned Kijun line and will turn the focus for a correction towards 84.20 supports.
Please also check daily AUD/JPY Analysis.