AUD/JPY Bulls in command, targets 80 mark?

By FXStreet The AUD/JPY cross held firm onto 79 barrier and staged a solid comeback this session so far, solely on the back of a rebound in the AUD/USD pair.

AUD/JPY testing 5-DMA at 79.65

The AUD/JPY pair now rises 0.23% to 79.65, heading for a test of 20-DMA located at 79.97. The cross in the AUD/JPY pair tries hard to extend its recovery mode beyond 5-DMA amid a better risk tone persisting in the markets backed by commodities’ rebound, which underpins higher-yielding currencies such as the AUD.

On the other hand, the USD/JPY pair trades absolutely flat near 110 threshold, offering little support to the bulls and thus, keeps the upside capped. Next on focus remains the US housing data and FOMC Member Tarullo’s speech lined up in the NY session.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 79.71/97 (May 19 high/ 20-DMA) and above which it could extend gains to at 80.47/50 (daily R3). To the downside immediate support might be located 79 (round figure) below that at 78.14 (multi-week low).
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Source:: FX Street