FxWirePro: AUD/JPY Struggles to Hold Gains Above the 80 Handle, Bias Higher

FxWirePro: AUD/JPY Struggles to Hold Gains Above the 80 Handle, Bias Higher

• AUD/JPY has re-taken the 80.00 handle post RBA minutes which showed that the members were not so dovish at the May 3rd meeting. 
• Minutes revealed that "members discussed the merits of leaving interest rates on hold but decided on balance that a cut would help return inflation to target over time. 
• Markets currently pricing out RBA rate cuts post publication of minutes, expect a potential more cautious approach towards cutting rates again. 
• AUD/JPY is struggling to hold above the 80 handle, currently pared some gains to trade at 80.07 levels. 
• Technicals support further upside in the pair, weakness only below 78.75. 
• The pair has broken major trendline resistance at 79.90 and finds next hurdle at 80.65. 
• Supports on the downside are seen at 78.75 (trendline), 78.63 and then 78.17.
  

Recommendation: Good to buy dips around 80 levels, SL: 79.45, TP: 80.40/80.65/80.90 

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