AUD/JPY stalls at 86.00 macro resistance

AUD/JPY is being faced with macro resistance at the 86.00 vicinity, following 4 days of consistent gains, with the latest impulse higher courtesy of Fed’s Yellen, who kept her dovish stance in a speech on Tuesday.

AUD rises as Yellen sticks to dovish rhetoric

Federal Reserve Chair Janet Yellen said that cautioun is especially warranted in raising interest rates, but as Kathy Lien, Co-Founder at BK Asset Management, notes, ” the line that crushed the dollar was her comment that the “Fed has considerable scope for stimulus if needed.” That same line was the catapult needed for alpha-type high-yielding currencies like the Aussie to take-off; the SP500 also soared in sync with gold, aiding the AUD rise vs a more risk-off sensitive currency like the Japanese Yen.

AUD/JPY key levels

In terms of key levels for the day, should a resolution with acceptance above the 86.30 line be manifested, more ambitious bullish targets towards 86.50 and 87.00 (ATR 14) are on the cards, followed by 87.50 (origin supply early Jan). On the downside, 85.50 mid round number is the immediate support, ahead of 85.00 psychological handle, followed by sticky support are at 84.30/50.

AUD/JPY is being faced with macro resistance at the 86.00 vicinity, following 4 days of consistent gains, with the latest impulse higher courtesy of Fed’s Yellen, who kept her dovish stance in a speech on Tuesday.

(Market News Provided by FXstreet)