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AUD/JPY sold-off at 81.75, drops below 1h 100-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The bulls seem unstoppable and now push the cross in the AUD/JPY sharply higher above 81 handle, responding to the solid recovery in oil and copper prices.

    AUD/JPY hits daily highs and retreats

    Currently, the AUD/JPY pair trades 1% higher at 81.36, easing-off fresh session highs reached at 81.75 in early Europe, The AUD/JPY cross trims gains, although remains heavily bid as markets rejoice the risk-on rally in equities and commodities’ rebound. This provides double booster shot to the cross, as the Aussie benefits from risk-on moods on one hand; the yen weakens versus the buck as the safe-haven demand wanes.

    On the data-front, the weaker than expected Chinese Q4 GDP numbers had little impact on the AUD/USD pair, and continues to underpin the rally in AUD/JPY. In Q4 2015, China's economy fell to 6.8%, down from the 6.9% registered in the previous quarter and against 6.9% growth expected.

    Meanwhile, markets ignored BOJ Kuroda’s comments and now continue to track the broader market sentiment amid a lack of relevant data for the major in the day ahead.

    AUD/JPY Technical Levels

    To the upside, the next resistance is located at 81.75/82 (daily high/ round number) and above which it could extend gains to 82.83 (Jan 15 High). To the downside immediate support might be located 80.54 (daily pivot) below that at 79.61 (daily low).
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