FXStreet (Mumbai) – The AUD/JPY cross was hit by a fresh bid-wave in the mid-European session, mainly driven by fresh sell-off in the yen against the US dollar.
100-DMA back in sight?
Currently, the AUD/JPY pair rises 0.13% to fresh session highs of 87.03, extending the recovery from near 5-DMA placed at 86.63. The cross in the AUD/JPY resumes its upward march, after a temporary reversal seen in the previous session, although the upside remains limited on the back of ongoing weakness in AUD/USD.
The AUD/USD pair remains pressured as FOMC/RBA policy divergence comes back in the spot light after the RBA Governor Stevens said earlier today that the monetary policy patch for the central bank tilts more towards easing than tightening.
However, a fresh bout of buying interest seen around the AUD/JPY cross is mainly on the back of some renewed JPY selling, with USD/JPY almost reached 122 handle.
In the session ahead, the cross will take cues from the sentiment on the US stocks and a set of US data for further momentum.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 87.59 (Nov 4 High) and above which it could extend gains to 87.70/86 (100-DMA/ Oct 27 High). To the downside immediate support might be located 86.66/63 (daily low/ 5-DMA) below that at 86.08 (50-DMA).
(Market News Provided by FXstreet)