AUD/JPY meets supply near hourly 50-SMA

By FXStreet FXStreet (Mumbai) – The AUD/JPY recovery lost legs near hourly 50-SMA placed at 81.29 and the prices retreated thereon, despite the ongoing recovery seen in oil and copper prices.

AUD/JPY back below 81 handle

Currently, the AUD/JPY pair trades 0.52% higher at 80.77, retracing from fresh session highs printed at 81.26, few pips below hourly 50-SMA. The AUD/JPY cross eases-off highs and is seen consolidating the overnight recovery below 81 handle, largely as the AUD/USD pair halted its rebound and now trims gains, edging back below 0.69 barrier.

Moreover, AUD/JPY fails to sustain above 81 mark as the yen is seen gaining ground versus the greenback, sending the USD/JPY pair lower to trade around 117.25 levels. However, the cross remains well on the bids as the higher-yielding currencies remain in demand after the weekend’s Chinese central bank announcement to stabilize CNH markets boosted market sentiment.
Next in focus remains the Chinese growth numbers for the fourth quarter, with markets expecting China to have grown at the slowest pace since Q 1 2009.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 81.26/29 (daily high/ 1h 50-SMA) and above which it could extend gains to 81.82/82 (1h 100-SMA/ round number). To the …read more

Source:: FX Street