AUD/JPY rallies and extends recovery to test 83 handle

By FXStreet FXStreet (Guatemala) – AUD/JPY is currently trading at 82.97 with a high just through the 83 handle at time of writing.

AUD/JPY has recovered some of the losses in the back of better risk sentiment, in an albeit risk off environment still. AUD/JPY made a low of 80.88 at the start of the week and the cross recovered right up to the highs of 82.78. Stocks have been steadier as the dust of the opening Chinese stock markets crash has started to settle.

The Yen is on the back foot again and has rallied up through the 118 handle after lows of 116.68 earlier in the recent sessions was picked up below the psychological 117 handle as cheap dollars. Aussie is also making a break for it today after the Yuan fix was neutral for a 4th consecutive day. We now await the Chinese trade data.

AUD/USD levels

Technically, a break of the 83 handle will ignite a recovery to compete with 6th and 7th Jan double top at 83.40 exposing 84.20 To the downside, 200 month SMA at 81.34. 0.7939, the 3rd Oct 2012 weekly stick lows come as next key downside targets.
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Source:: FX Street