AUD/JPY: Recovery Stalled Near 79.30 as Yen Picks-up Pace

AUD/JPY: Recovery Stalled Near 79.30 as Yen Picks-up Pace

9 May 2016, 04:34
Roberto Jacobs
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AUD/JPY: Recovery Stalled Near 79.30 as Yen Picks-up Pace

AUD/JPY is extending its early bounce and now eases slightly from session highs as demand for the Japanese currency is seen on the rise amid mixed sentiment in Asia.

AUD/JPY tracks Oil rebound

The AUD/JPY pair now trades +0.33% higher at 79.08, retreating from session highs reached at 79.34 in the last hour. The cross keeps the bid tone intact and stages a solid recovery from three-month lows as the upbeat sentiment surrounding the AUD/USD pair underpins.

Moreover, a relatively weaker yen versus the American dollar also aids the pullback in the pair.
Meanwhile, the Aussie follows the oil price action and jumps higher, completely disregarding an aggressive sell-off seen in the iron-ore and copper prices.

However, the upside remains capped on the back broad based US dollar strength, with the DXY consolidating Friday’s volatile moves backed by poor NFP report.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 80.29/80.34 (10-DMA/ May 6 High) and above which it could extend gains to at 81.30 (1h 200-SMA).To the downside immediate support might be located 78.87/76 (daily S1 & low) below that at 78.14 (multi-week low).


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