AUD/JPY: stalling ahead of key 100 dma

By FXStreet AUD/JPY is stalling on its six-day rally from the recent lows of 79.80 and is up to challenge the vicinity of the 100 dma at 85.21.

AUD/JPY broke out of the sideways channel formed as a consolidation of end of Jan’s downtrend from 86.14 the high on the 1st Feb. A number of supporting factor ignited demand for the carry trade from a better risk environment to fundamentals in the commodity sector that has been making a come back in recent session, with oil up 6% overnight and iron ore soaring 16%.

In recent trade, RBA’s Lowe was speaking and said it would be helpful to have a slightly lower currency and sees underlying strength in the economy. The Japanese GDP for Q4 annualized was better than expected at -1.1% vs -1.5% and -1.45% prior.

AUD/JPY levels

Technically, AUD/JPY trades just above the pivot of 84.26 while capped below the 85 handle and below the 100 dma at 85.21. R1 is just above at 85.27, R2 at 85.95 and R3 at 86.96. To the downside, S1 is at 83.57, S2 at 82.56 and S3 at 81.88, just above the 20 dma at 81.74.
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Source:: FX Street