AUD/JPY: Downside Held Up by USD/JPY

AUD/JPY: Downside Held Up by USD/JPY

23 March 2016, 19:34
Roberto Jacobs

AUD/JPY: Downside Held Up by USD/JPY

AUD/JPY has lost out to market's risk aversion and has penetrated the 85 handle to the downside now, testing levels below 84.80 support.

AUD/JPY plummeted along with the Aussie from the 0.76 handle to deep levels on the 0.75 handle (0.7529 the recent low) , compromising the bulls valiant attempts over the past number of sessions.

The greenback has also been a very strong performer across the board with USD/JPY cushioning the downside in the cross, advancing towards the 113 handle as the US doll picks up bids. We now look ahead to the key US data that is approaching fast that could be make or break of the cross. We look ahead to the main events in the US that are Durable goods (Thursday 12:30 gmt), Q4 GDP (third estimate) (Friday 12:30 gmt). Data from China's manufacturing will also be key along with US nonfarm payrolls at the start of April.

AUD/JPY Levels

With a bearish bias below Pivot is 85.15AUD/JPY 84.80 is a key technical support that of broken, opens the way to 84.12 recent lows through 4hr 100 sma at 84.53. 83.34 is next key downside target as 8th March low. On the flip side, R1 is 86.16, R2 is located at 86.69 and R3 is at 87.71.

(Market News Provided by FXstreet)

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