Friday, October 30, 2015

AUD/JPY halts a 3-day slide, tests 86 ahead of BOJ

FXStreet (Mumbai) - AUD/JPY posed a solid rebound from three-week troughs and now extends gains in a bid to reclaim 86 handle.

AUD/JPY supported at 50-DMA

Currently, the AUD/JPY pair rises 0.34% to 85.96, moving further away from lowest levels in three-weeks reached at 85.46 on Thursday. The cross in the AUD/JPY extends its recovery in Asia as the AUD bulls jumped back into bids after the recent run of lows. Also, the cross found fresh bids near 50-DMA located at 85.72 and bounced higher towards 86 barrier.

However, gains remain in check on the back of a stronger yen versus the US dollar, expectant of the BOJ standing pat at today’s policy decision due to be announced any moment. While a better print of the Japan’s inflation report also remain yen-supportive.

In the session ahead, the cross will take cues from the upcoming BOJ decision followed by its Semi-annual outlook and the press conference. While a host of crucial US macro releases will be also watched for further momentum.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 86.43/58 (5-DMA + 1h 100-SMA) and above which it could extend gains to 86.78/79 (1h 200-SMA + 10-DMA). To the downside immediate support might be located 85.72 (50-DMA) below that at 85.11/85 (Oct 6 low + round number).
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