Forex: AUD/JPY threatening 87; next bullish target at 87.55

FXstreet.com (San Francisco) - AUDJPY managed to climb above the 86.70 resistance area and, after peaking at 86.90, conclude Tuesday's North American session up 0.6% at 86.86, levels not seen since late March of this year. Spot continues to trade with a positive bias as market participants price in an anticipated LDP victory in Sunday's elections in Japan, keeping JPY top-heavy across the board.

So far, AUDJPY bulls appear to maintain control in early Asian trade, looking poised to test offers at 87.55 (Mar 27 high), 88.00 (Mar 2 high) and 88.65 (Mar 19 high). The cross may find support on dips at 86.40 (Nov 26 high) and, below there lies a cluster of support at 86.10 (Aug 1, 2011 high). Spot last exchanges at 86.90 with the 87 in sight.