FXStreet (Mumbai) – The AUD/JPY’s recovery from four-day lows ran out of legs just short of 50-DMA at 85 levels and the prices drifted lower, as the yen appears to regain strength after a minor profit-taking spree.
AUD/JPY holds above 10-DMA
Currently, the AUD/JPY pair rises 0.12% at 84.62, retreating from fresh session highs printed at 84.94, just a whisker away from 50-DMA barrier. The AUD/JPY cross reverses the spike from daily highs and edged lower, as the AUD/USD pair faces fresh selling pressure as the greenback corrects slightly higher after the recent sell-off.
However, the downside remains cushioned as markets unwind their yen shorts after USD/JPY hit fresh two-month lows at 117.03, following worse than expected US services PMI reports, which triggered extensive USD slump across the board.
Meanwhile, the pair will continue to track the USD moves as well as the oil price action ahead of the US weekly jobless claims and factory orders data due later in the NY session.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 84.94/85 (daily high/ 50-DMA) and above which it could extend gains to 86.17/35 (Feb 2 High/ 100-DMA). To the downside immediate support might be located 84.18/14 (daily pivot/ 1h 200-SMA) below that at 83.57/17 (daily S1/ Feb 3 Low).
(Market News Provided by FXstreet)