AUD/JPY Extends 3-Day Winning Streak, 80 Handle Tested
AUD/JPY extends its recovery mode from three-month troughs, receiving fresh boost from the extension of the risk-on trades in Europe.
AUD/JPY advances on yen weakness
The AUD/JPY pair now trades +0.66% higher at 79.78, quickly retreating from session highs reached at 79.94 in the last hour. The cross remains heavily bid as the upside gets further traction from improved risk sentiment across the financial markets after the Chinese inflation data helped ease China slowdown fears and calmed markets.
As a result, the higher-yielding/ risk currencies such as the AUD, gained versus the greenback, while USD/JPY jumped to two-week highs just shy of 109 handle on renewed risk-on wave that hit the European traders.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 80.03/80.50 (10-DMA/ 1h 200-SMA) and above which it could extend gains to at 81 (round number). To the downside immediate support might be located 79.46 (1h 20-SMA/ 5-DMA) below that at 78.14 (multi-week low).