AUD/JPY: Tracking the Upside but Overdone?

AUD/JPY: Tracking the Upside but Overdone?

7 March 2016, 04:51
Roberto Jacobs
AUD/JPY: Tracking the Upside but Overdone?

AUD/JPY is currently is trading at 84.33 with a high of 84.53 and a low of 84.09.

AUD/JPY has tracked the recovery in of both USD/JPY and the Aussie. However, whether the Aussie can remain in the lead is questionable considering a number of underlying fundamentals that all suggest, from a fundamental standpoint, that this could be a little overdone.

AUD/USD: too good to be true? - BBH

The nonfarm payrolls was a positive result in the headline, but the detail behind that was alarming in respect to wages, (thus watch for risk in downside potentia in USD/JPY for this week, and Fed speak) and that supported a further bid in the commodity currency while oil also extended its rally in to late last week and closing sessions.

AUD/JPY levels

Technically, AUD/JPY is supported on the 84 handle after meeting strong supply just shy of the highs of 84.93 at the end of last week's trade. The 84.20 support where the 20 sma on the 1hr is located a few pips higher has been a persistent area of demand from when the cross recovered from just below the 80.0 handle at the end of Feb's business. However, the cross has moved into overbought territory and the 4hr RSI reads 84.5, signalling for a pause and consolidation.

(Market News Provided by FXstreet)
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