AUD/JPY strikes fresh 3-week highs on BOJ’s surprise

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The AUD/JPY cross has seen some huge buying interest and manages to keep most BOJ-inspired gains as we head towards the mid-European trades.

    AUD/JPY consolidates below 86 handle

    Currently, the AUD/JPY pair trades 1.91% higher at 85.78, holding firmly above 50-DM support at 85.48. The AUD/JPY cross received double booster shot this Friday after the yen was hammered across the board following the unexpected negative interest rate policy adopted by the BOJ.

    While on the other hand, the AUD/USD remained on the bids as traders prefer to take the yield advantage amid risk-on rally in the equities and higher oil prices. Looking ahead, the crucial US advance GDP will provide fresh direction on the US dollar, eventually impacting the cross.

    AUD/JPY Technical Levels

    To the upside, the next resistance is located at 86.29/46 (daily high/ 200-DMA) and above which it could extend gains to 87 (round number). To the downside immediate support might be located 85.48 (50-DMA) below that at 85.04/85 (daily R1).
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