AUD/JPY bounces-off key support, back above 81

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The AUD/JPY pair halted its downslide just below the crucial support placed near 80.85 region and witnessed a quick recovery above 81 handle.

    AUD/JPY recovers as yen pares gains

    Currently, the AUD/JPY pair trades -0.45% at 81.21, reversing a downward spike to 80.84 daily lows, the confluence of hourly 50 and 200-SMA. The AUD/JPY cross takes on the recovery beyond 81 handle as the yen bulls took a breather in their upsurge and pared gains against the greenback, having met fresh supply at 112 handle.

    Further aiding the recovery in the cross, the AUD/USD pair flipped to gains and consolidates the upside after the recent strength. Although the recovery appears fragile amid persisting risk-off market profile, as oil and stocks turn in the negative territory.

    In the day ahead, the major will continue to track the broader market sentiment ahead of a fresh batch of US macro releases, with the consumer confidence, existing home sales and S&P/CS Composite-20 HPI y/y due on the cards.

    AUD/JPY Technical Levels

    To the upside, the next resistance is located at 81.98/82 (20-DMA/ round number) and above which it could extend gains to 82.46 (daily R1). To the downside immediate support might be located 80.89/84 (1h 200-SMA/ daily low) below that at 80.18/00 (Feb 22 Low/ round figure).
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