AUD/JPY Consolidating the Upside Below 84 Post-China Trade
AUD/JPY Consolidating the Upside Below 84 Post-China Trade
The AUD/JPY
cross extended its winning streak into a fourth day today and reversed
Thursday’s entire slide as the bulls were bolstered by improved risk
appetite
as well as strong China’s exports and imports data.
AUD/JPY rises to fresh six-day highs
The AUD/JPY pair now jumps +2.20% to 83.81, having posted fresh six-day highs at 84.02 on China data release.
Most of the gains seen in the AUD/JPY cross is largely due to the
extensive rally seen in the AUD/USD pair, underpinned by a stronger than
expected Chinese trade balance report and a massive rally seen in Asian
markets.
Moreover, the ongoing weakness in the Japanese
currency against its American counterpart also contributes to the upside
in the cross. The persistent risk-on moods triggered by the renewed
rally in the oil prices as well as upbeat China trade data diminished
the bids for the safe-havens such as the Japanese yen.
Meanwhile,
the cross will continue to track the broader market sentiment ahead of
the key US datasets and Australian employment report.
AUD/JPY Technical Levels
To
the upside, the next resistance is located at 84/84.02 (round number/
daily high) and above which it could extend gains to at 84.27/30 (100
& 20-DMA).To the downside immediate support might be located 83.62
(50-DMA) below that at 83.35/82.93 (1h 200-SMA/ daily pivot).
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