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).
