AUD/JPY Reversing from 86.00 Strong Resistance
On Monday, the Japanese currency strengthened against its Australian counter part with the AUD/JPY giving up some of its rapid appreciation on Friday to trade at 85.75 odd level.
The
pair's sharp recovery from early April lows of 80.67 stalled at a very
important resistance near 86.00 round figure mark. Since the beginning
of 2016, the pair has repeatedly failed to sustain its strength above
86.00 mark.
Technical levels to watch
On
the upside, 86.00-86.20 area remains key resistance area to be
conquered. Only a sustained strength above this immediate strong
resistance would pave way for further up-move for the pair in the
near-term.
The yen was stronger against its rival currencies
on Monday, with Japanese corporate players moving to pick up the
Japanese currency after its rapid depreciation since Friday. On a clear
break-through beyond this immediate resistance, the pair could
immediately dart towards 87.00 mark handle.
on the flip side,
should the pair extend its reversal from an important resistance zone
and subsequently drop below day's low of 86.50 could exert additional
downward pressure on the pair. Below 86.50, the pair could drop towards
85.40-35 horizontal support area.
