AUD/JPY: can the cross make it to the 4hr 200 sma?

By FXStreet FXStreet (Guatemala) – AUD/JPY has been resilient and has pushed on through the 100 sma on the 4hr and taken on the 83 handle as the cross starts to emerge from a phase of consolidation.

The cross has rallied, despite the Nikkei 225 closing down -2.35% at 16,708.90, but the move is more a profound weakness in the Yen across the board as markets begin to factor in the price of the BoJ easing.

Japan’s Abe recently said that the government and BOJ will work together to beat deflation. This is of course nothing new from Abe, but timing wise, it comes just before the BoJ this week with the possibility of further stimulus to come from the Central Bank.

AUD/JPY levels

Technically, although there has been a bid through the 100 sma on the 4hr, there remains a lack of conviction until the cross can achieve the 200 sma on the same time frames at 84.95. The 85 handle is guarding territory towards a full recovery of the start of the year’s downtrend from 87.60. On a reversal, the support areas are 81.66, S2 at 81.39 and S3 at 81.19.
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Source:: FX Street