AUD/JPY off-highs, tested 50-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Having failed at 10-DMA in the previous session, the cross in the AUD/JPY attempts another run to the upside, with the bulls supported by re-emergence of risk-on trades in Asia.

    AUD/JPY fails to take out 50-DMA at 87.77

    Currently, the AUD/JPY pair rises 0.19% to 87.68, easing-off fresh session highs reached at 87.74 last minutes. The AUD/JPY cross extends its recovery from below 87 levels and remains supported amid a better risk sentiment on the back of rebounding Asian equities. Hence, the AUD/USD pair benefits from the risk-on trades and attempts recovery beyond 0.72 handle.

    While a weaker yen versus the US dollar also contributes to the gains in AUD/JPY heading to the crucial Fed decision due later in the day ahead. Meanwhile, a slew of US economic releases, including industrial production, housing data and manufacturing PMI, are expected to have virtually no impact on the major.

    AUD/JPY Technical Levels

    To the upside, the next resistance is located at 87.77 (50-DMA) and above which it could extend gains to 88.16 (Dec 15 High). To the downside immediate support might be located 87.47 (1h 50-SMA) below that at 87.09 (Dec 15 Low).
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