AUD/JPY Bulls in Positive Territory above 100 1HR SMA
AUD/JPY is currently in positive territory given the return of risk this week and a pick up in the commodities sector, despite the strength seen in the Yen from yesterday's Tokyo open and subsequent bid.
Traders backed the Yen when note was given to a Japanese official suggesting that the BoJ were not about to intervene anytime soon. However, today's CPI data should add some softness to the Yen and aid the cross on its onward northerly trajectory. WTI penetrated $50..bbls overnight and the commodities sector in general is performing on a softer dollar as markets begin to discount the June hike from being a certainty as US data continues to under perform.
AUD/JPY recovered from the lows of 78.62 and rallied to the 79.50 mark meeting previous resistance from the week. A break of there opens 79.80 as next target. The key objective is 80.60 and the previous double bottom and 82.50 late January highs. To the downside, the 100 sma on the 1hr sticks is located at 79.09 as last defence for 78.80 and recent aforementioned lows.