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AUD/JPY extends recovery from hourly 200-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The AUD/JPY cross halted its three-day rally and fell into the red zone in the European hours, as the yen continues to gain momentum versus the Australian dollar amid worsening risk-sentiment.

    AUD/JPY trades below 5-DMA

    Currently, the AUD/JPY pair drops -0.46% to 87.38, attempting a brief recovery from 87.10 daily lows. The AUD/JPY cross trims losses as the Australian dollar turned positive versus its American counter in last hours.

    However, the cross remains heavily pressured amid ongoing USD/JPY weakness as risk-aversion prevails ahead of central banks’ events due later this week. While negative performance on the global indices also spurs the demand for the yen at the expense of the Aussie.

    Markets now look forward to a host of US macro releases due later in the New York session ahead of the crucial inflation figures from Australia and the Fed decision due out tomorrow.

    AUD/JPY Technical Levels

    To the upside, the next resistance is located at 87.62 (1h 50-SMA) and above which it could extend gains to 88 (psychological levels + Today’s High). To the downside immediate support might be located 87.10/05 (daily low + 1h 200-SMA) below that at 86.87 (Oct 23 low).
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