AUD/JPY: Bears Relentless, Heads Towards 79 Handle

AUD/JPY: Bears Relentless, Heads Towards 79 Handle

18 May 2016, 09:28
Roberto Jacobs
0
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AUD/JPY: Bears Relentless, Heads Towards 79 Handle

The AUD/JPY cross remain heavily offered in the European trades, now attempting a tepid-bounce towards the mid-point of 79 handle.

AUD/JPY testing support near 80.20

The AUD/JPY pair now drops -0.64% to 79.45, having posted fresh session lows at 79.31 last hour. The cross in the AUD/JPY pair is seen making minor recovery attempts, although remains deep in the red, mainly driven by heavy selling seen in the AUD/USD pair after disappointing wage price index from Australia disappointed markets, while a broadly higher USD also weighed down on the Aussie.

While a better tone seen in the USD/JPY pair keeps the downside in check and now lends support to the recovery in the cross. Next on focus for the cross remains the Fed minutes due later today, while tomorrow’s Aus employment data will also remain in spotlight for further moves on the AUD.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 79.84/ 80 (Daily high/ round number) and above which it could extend gains to at 80.49/53 (daily R1/ 20-DMA). To the downside immediate support might be located 79 (round figure) below that at 78.14 (multi-week low).


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