AUD/JPY is offered in a bearish start in Tokyo and is finding the 100 dma a challenge to break above and has now been rejected there for a second time as the Yen gathers pace across the board.
The Aussie is stubbornly high in respect to the RBA’s desired levels down at 0.65c, as reiterated by deputy Lowe earlier on in the week, but the market is content here while fundamentals allow it for the time being.
However, after yesterday’s positive surprise in Japan’s GDP data, a turn of events in the commodity sector could see this top as a double top when mixing fundamentals with the technical outlook in the cross. Data wise we are quiet until Aussie CPI expectations and China’s PPI and CPI data for Feb tomorrow.
Technically, AUD/JPY is at the lowest levels since 3rd March and carving out a bearish bias with S2 at 83.43 guarding S3 at 82.95 and trades below the pivot 84.56. The 200 sma at 82.66 on the hourly sticks could be an area of a pause in the downside below 0.8300 while 82.00 marks the previous resistance of the mid Feb to 26th Feb’s sideways channel. A break of 79.50 would be significant.
(Market News Provided by FXstreet)