AUD/JPY accelerates losses as risk-off picks up

By FXStreet The AUD/JPY’s solid pullback from 80.25 lows, lost legs near 81.70 region and the cross came under renewed selling pressure as risk-aversion got refuelled amid faltering oil price recovery.

AUD/JPY challenges 81 handle again

Currently, the AUD/JPY pair slumps -1.03% to fresh session lows of 81.25, on its way to revisit daily lows struck at 80.25 in mid-Asia. The AUD/JPY cross receives double blow from the risk-off wave that gripped Europe, with the latest bout of selling attributed to the renewed weakness in the Aussie as oil price recovery faltered following IEA bearish monthly report.

While USD/JPY is seen consolidating above 115 handle, with the recovery lacking follow-through amid persistent risk-off market profile and a broadly lower US dollar. Ahead in the day, the US JOLTS jobs openings report will be watched for fresh cues on the buck, which will eventually impact AUD/JPY.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 82.38/49 (1h 50-SMA/ 5-DMA) and above which it could extend gains to 83.15/36 (20-DMA/ 1h 100-SMA). To the downside immediate support might be located 80.25 (daily low) below that at 79.61/52 (Jan 18 & 15 Low).
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Source:: FX Street