AUD/JPY Jumps to 79.85, Inching Closer to 80.00 Psychological Mark
The AUD/JPY cross extended its strong bid tone from Asian session and has now rise to day's peak level of 79.85 amid light trading session on Monday.
The pair initially benefited from broadly weakening Japanese currency led by reports suggesting that Japan might delay a planned sales tax hike until 2019. Moreover, recovery in the Aussie on the back of a minor up-tick in oil prices contributed further towards the pair's strong up-move during the European session.
At the time of writing, the pair was trading higher by over 0.8% and has conquered 20-day SMA resistance for the first time since late April. A sustained move above 10-day SMA and a follow through strength beyond 20-day SMA suggests extension of the pair near-term upward trajectory.
Technical levels to watch
From current levels bulls would eyeing to reclaim 80.00 psychological mark, above which the pair might extend its upward trajectory towards 80.56 (May 17 high) ahead of 80.66 (May 11 high). Momentum above these immediate resistance levels has the potential to continue boosting the pair in the near-term towards testing 50-day SMA resistance near 82.35-40 region.
On the flip side, 79.30-25 would be immediate support to defend, which if broken seems to drag the pair back towards retesting recent lows support near 78.35-30 area.