AUD/JPY off-highs, tested 50-DMA

FXStreet (Mumbai) – Having failed at 10-DMA in the previous session, the cross in the AUD/JPY attempts another run to the upside, with the bulls supported by re-emergence of risk-on trades in Asia.

AUD/JPY fails to take out 50-DMA at 87.77

Currently, the AUD/JPY pair rises 0.19% to 87.68, easing-off fresh session highs reached at 87.74 last minutes. The AUD/JPY cross extends its recovery from below 87 levels and remains supported amid a better risk sentiment on the back of rebounding Asian equities. Hence, the AUD/USD pair benefits from the risk-on trades and attempts recovery beyond 0.72 handle.

While a weaker yen versus the US dollar also contributes to the gains in AUD/JPY heading to the crucial Fed decision due later in the day ahead. Meanwhile, a slew of US economic releases, including industrial production, housing data and manufacturing PMI, are expected to have virtually no impact on the major.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 87.77 (50-DMA) and above which it could extend gains to 88.16 (Dec 15 High). To the downside immediate support might be located 87.47 (1h 50-SMA) below that at 87.09 (Dec 15 Low).

Having failed at 10-DMA in the previous session, the cross in the AUD/JPY attempts another run to the upside, with the bulls supported by re-emergence of risk-on trades in Asia.

(Market News Provided by FXstreet)