AUD/JPY Firmer, Pierces Through 82.50 Resistance

AUD/JPY Firmer, Pierces Through 82.50 Resistance

12 April 2016, 06:15
Roberto Jacobs

AUD/JPY Firmer, Pierces Through 82.50 Resistance

The AUD/JPY cross remains strongly bid in the Asian trades, mainly driven by renewed strength in the AUD/USD pair after OZ business conditions hit 2008 highs last month.

AUD/JPY at four-day high

The AUD/JPY pair now jumps +0.70% to 82.58, hovering close to fresh four-day high reached at 82.63 last minutes. The cross in the AUD/JPY extends its winning streak into a fourth day today as the bulls cheers stronger business confidence and conditions report from Australia, while the yen’s relative weakness further collaborated to the upbeat sentiment around the cross.

The Aussie rallied after the NAB data showed Australia’s business confidence index to have risen from 3 in February to 6 last month, while the business conditions index went from 8 to 12, hitting an eight-year high. Moreover, a rebound in the USD/JPY pair from seventeen-month lows reached the day earlier, also added to the strong gains in AUD/JPY.

Looking ahead, focus now remains on the Chinese trade balance and GDP figures due later this week, while the Aus jobs report will be also closely watched for fresh cues on RBA’s policy outlook.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 83.20/28 (10-DMA/ daily R2) and above which it could extend gains to at 83.72/84 (1h 200-SMA/ round number).To the downside immediate support might be located 81.87/82 (5-DMA/ daily pivot) below that at 81 (psychological levels).

(Market News Provided by FXstreet)

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