AUD/JPY near key 80.50 area

By FXStreet The Australian dollar rose further against the yen during the European session and approached again daily highs after Wall Street opening bell. Risk appetite and a weak Japanese yen amid intervention comments from officials boosted the pair.

AUD/JPY rose above 80.00 earlier and recently hit a fresh daily high at 80.41, the strongest since last Thursday. Currently, it trades at 80.25/30, up almost a hundred pips for the day so far, recovering for the second day in a row.

More gains above 80.50?

The current rally lost strength slightly below the 80.50 area that could be seen in the short-term as a key resistance level. The mentioned zone capped the upside several times last week and also today. If the aussie rises and consolidates above it could open the doors for further gains. The next potential resistance is seen around 81.00/10 (Apr 11 low) and then 81.95/82.00 (last week highs).

On the opposite direction, if AUD/JPY fails to break above 80.50, the level to watch would be 79.90 (American session low), a break lower could change the intraday tone favoring the downside. Below then next support level might be seen at 79.50/55 (May 9 high) and 78.65 (May 9 …read more

Source:: FX Street