Talking Points

AUDJPY breakout scalps in focus- near-term resistance 95.49
Possible double bottom in play targets objectives into 98
Event Risk on TapThis Week

AUD/JPY Daily

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

AUDJPY breakout in focus after breaching key slope resistance confluence
Near-term resistance confluence in view at 95.50 ( 100% Extension & 200DMA)
Subsequent resistance objectives at 96.10 & slope resistance ~96.60
Broader double bottom objective targets 98.45
Interim support at 9450 backed by highlighted region into February ML (bullish invalidation)
Daily RSI testing 60-breach for the first time since October 30th – constructive
Momentum support trigger pending
Event Risk Ahead: Bank of Japan Interest Rate Decision on April 30th and China Manufacturing & Non-Manufacturing on May 1st.

AUD/JPY 30min

Notes:AUDJPY broke above the weekly ORH / key near-term resistance at the highlighted zone around the 94-handle with the rally now targeting targets at 95.49/50 where the 100% extension off the yearly low converges on the 2000-day moving average. We’ll be looking for a reaction here with a break higher targeting key resistance into the upper MLP / 50% retracement at 96.10. Interim support rests at 94.50 backed by the ML & 93.80. Keep in mind that this breach does constitute a double bottom on the February & April lows with a measured move targeting a broader rally into the 98-handle.

Bottom line: Looking for long triggers while above the operative median line off the monthly lows targeting the upper MLP. A quarter of the daily average true range yields profit targets of 24-27 pips per scalp. Caution is warranted heading into the BoJ & China PMI data with the releases likely to fuel added volatility in Aussie & Yen crosses.

* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.

Relevant Data Releases

Other Setups in Play:

Scalp Webinar: USD Risks Fresh Lows Ahead of Slowing GDP, FOMC
GBPJPY Breakout Eyes 181- Long Scalps Favored Above 179
GBPCAD Testing Slope Resistance- Long Scalps at Risk Sub 1.84
Scalp Webinar: USD Correction In Focus- Kiwi at Risk Sub 7700
NZDUSD Breakout Stalls at 7700 Resistance- Short Scalps Pending

—Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

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Source: Daily fx