AUD/JPY Recovers to 79.00 from Near-Term Trading Range Support
Last two days of bearish move now seems to be fading away and the AUD/JPY cross recovers back to 79.00 mark, extending a bounce off 78.30 support area tested on Thursday.
Traders seem to lighten their positions, especially Yen long positions, which seems to assist the pair to stage a recovery on Friday.
In the previous two trading session, the AUD/JPY cross reversed all of its gains to 80.80 level and dropped to 78.30 on Thursday, as the Japanese currency remained strong an up-surge in global risk-aversion.
This week's move confirms the pair's near-term trading range held since last four week. Hence, it would be prudent to wait for a decisive break-out of the current trading range before confirming the near-term direction of the pair.
Technical levels to watch
On the immediate downside, the lower end of the trading range (78.30-25 zone) remains key support to defend, which if broken should open room for further depreciating move for the cross. Below 78.30-25 support, the cross seems to drop back to retest Feb. lows near 77.60-55 area before heading towards its next major support near 75.55-50 area.
On the flip side, momentum above 79.00 level would reaffirm near-term range-bound movement, thus assist the pair back towards the top end of the trading range resistance near 80.70-80 zone with 80.00 psychological mark as intermediate support.