AUD/JPY Heavy, On its Way to Hourly 100-SMA?

AUD/JPY Heavy, On its Way to Hourly 100-SMA?

31 March 2016, 09:11
Roberto Jacobs
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AUD/JPY Heavy, On its Way to Hourly 100-SMA?

The AUD/JPY cross is relentlessly offered this Thursday so far, with the bears bringing a halt to five straight sessions of gains against a backdrop of broad USD rebound.

AUD/JPY back below 86 handle

Currently, the AUD/JPY pair drops -0.44% to 85.96, having posted fresh session lows at 85.78 last minutes. The cross took a beating in today’s trading session as the AUD/USD pair failed to sustain at nine-month peaks and slipped in the red, despite the positive performance on the Australian stocks. The S&P/ASX 200 index closed +1.45% today.

While the strengthening yen on the back of FY 2016 year-end flows also pulled the cross lower from two-month highs reached at 86.66 the day earlier. Moving on, next on focus for the cross remains the US NFP report ahead of Tankan manufacturing index and China Caixin manufacturing PMI figures due tomorrow.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 86 (round number) and above which it could extend gains to 86.42 (200-DMA). To the downside immediate support might be located 85/84.90 (round number/ 100-DMA) below that at 84.44/28 (daily S3/ Mar 24 Low).

(Market News Provided by FXstreet)

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