AUD/JPY: Bulls dominate, heading towards 100-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The cross in the AUD/JPY prolongs its upward trajectory for the eighth consecutive session on Friday and aims to test the 100-DMA upside barrier now located at 89.27.

    AUD/JPY rises to fresh 2-month highs

    Currently, the AUD/JPY pair trades 1.44% higher at fresh 2-month highs of 88.33, bouncing-off strong support at 87 levels. The AUD/JPY cross extends its vertical rise after received double booster shots from both AUD strength and JPY weakness.

    The AUD/USD pair benefits from the rising commodity prices and the risk-on rally in the equities, which re-ignited the demand for higher yielding currencies. At the same time, the Japanese currency suffers across the board as improving risk-sentiment reduces the yen’s appeal as a safe-haven.

    Looking ahead, the Aussie will remain influenced by the broader market sentiment with the US traders bringing in some fresh momentum.

    AUD/JPY Technical Levels

    To the upside, the next resistance is located at 89.27 (100-DMA) levels and above which it could extend gains to 90 (round number) levels. To the downside immediate support might be located at 87.72 (H1 S3) below that at 87.34 (Hourly 20-SMA) levels.
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