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AUD/JPY taking on the recovery above 86 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    A classic risk-off theme extends into early Europe, with AUD/JPY bearing the brunt of a global sell-off on the final trading day of the week.

    AUD/JPY struggles to take-out 1h 50-SMA at 86.18

    The AUD/JPY pair now drops -0.15% to 86.11, bouncing-off quickly from a dip to 85.78, fresh session lows. The ongoing recovery in the cross can be mainly attributed to the recent signs of strength seen in the AUD/USD pair amid a minor pullback in the oil prices.

    However, the bears still remain in charge on the back of broad yen strength as markets seek safety in the Japanese currency against a backdrop of heavy sell-off in the Asian equities, which was triggered by poor Tankan manufacturing indices.

    Looking ahead, AUD/JPY, the risk barometer, will continue to track the broader market sentiment ahead of the much awaited US employment figures.

    AUD/JPY Technical Levels

    To the upside, the next resistance is located at 86.38 (200-DMA) and above which it could extend gains to 87/87.17 (round number/ daily R2). To the downside immediate support might be located 85.53/50 (10-DMA/ psychological levels) below that at 85/84.88 (round number/ 100-DMA).
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