AUD/JPY faces double-whammy, drops to 1h 100-SMA

By FXStreet FXStreet (Mumbai) – The AUD/JPY cross ran through double-trouble in the Asian session, as the yen jumped on the bids, and added to the persisting AUD weakness across the board.

AUD/JPY testing strong support at 87.51

Currently, the AUD/JPY pair drops -0.29% to 87.54, hovering close to fresh session lows reached at 87.51 last minutes, where 1h 100-SMA coincides. AUD/JPY halted its five-day rally and fell sharply from near 88 levels mainly driven by renewed sell-off seen in the AUD/USD pair as gold and copper prices accelerate their rout.

While the re-emergence of the JPY bulls on the bids after the recent drop to weekly lows versus the US dollar, also adds to the negative sentiment around the AUD/JPY cross.

Markets now await today’s FOMC minutes and the BOJ decision due tomorrow for fresh insights on the pair.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 88/88.02 (round number/ Nov 17 High) and above which it could extend gains to 88.41/43 (Oct 9 & 13 High). To the downside immediate support might be located 87.25/18 (Nov 17 low/ 1h 200-SMA) below that at 86.76 (Nov 16 Low).
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Source:: FX Street