AUD/JPY: Risks are on the upside - Natixis

Risks are on the upside for the AUD/JPY cross as upside parallels have emerged on the daily chart and as an upside bubble has also emerged on the weekly chart, suggests Micaella Feldstein, Research Analyst at Natixis.

Key Quotes

“Against this backdrop, dips to 83.50-83.70 (daily parabolic) and even to the 81.60 threshold (9-week moving average) will be seen as corrective: we indeed favour another test of the resistance at 85.70 (monthly parabolic). The break of this barrier would underpin bullish momentum, flagging 86.90 (9quarter moving average) and 89.05 (quarterly Bollinger moving average) as targets. The supports stand at 83.50-83.70, at 81.60, at 79.30 and at 77.60.”