FXStreet (Córdoba) - AUD/JPY failed to hold above 87.00 and pulled back, erasing daily gains. The pair climbed during the Asian session after Chinese economic data and then retreated, remaining within the trading range of the last few days.
During the European session it peaked at 87.19 but it failed to hold and pulled back. After the beginning of trading in Wall Street dropped to 86.50 and it was trading at 86.60.
The short-term trend remains sideways. Since last week the pair has been moving in a range between 86.20 and 87.50, unable to consolidate above 87.00.
Last week AUD/JPY finished lower and trimmed part of October gains. At the beginning of the month it rallied from 83.30 and to 88.60 (Oct 12 high) and then started to move to the downside, making a bearish correction.
Below 87.50 but on top of the 20-day MA
The decline from 7-week highs brought the price back below the important support
(previous resistance) located around 87.50. If the pair rises back above it could resume the upside.
On the positive side for the aussie, the decline from the highs stopped before the 20-day MA that currently stands at 85.90. A consolidation significantly below could favor the US dollar.
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