AUD/JPY: Recovery Faces Stiff Hurdle at 79.50

AUD/JPY: Recovery Faces Stiff Hurdle at 79.50

16 May 2016, 07:18
Roberto Jacobs

AUD/JPY: Recovery Faces Stiff Hurdle at 79.50

The bulls appear to have taken a breather from the recovery mode, with the AUD/JPY cross now drifting slightly lower from the mid-point of 79 handle.

AUD/JPY sees almost 1 big figure recovery

The AUD/JPY pair now advances 0.29% to 79.20, having recovered sharply from session lows struck at 78.65 in opening trades. The cross bounced from six-day troughs as the bulls fought back control after the Chinese data-induced decline. Although the recovery appears to lack momentum as the rebound in both AUD/USD and USD/JPY appears to have faded.

The cross got a lift from a turnaround in the risk conditions; particular after the Japanese stocks rebounded higher and fuelled a risk-on rally across the Asian markets. Nothing of note in terms of economic news in the day ahead, and hence the main focus will remain on the US CPI and Aus jobs report due later this week, while the Fed minutes is also eagerly awaited.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 79.46/50 (daily high/ 10-DMA) and above which it could extend gains to at 80.00 (round number).To the downside immediate support might be located 78.91 (daily pivot) below that at 78.14 (multi-week low).


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