AUDJPY rebounds, but will it last?


Best analysis

AUDJPY has recovered some of its overnight losses as risk sentiment recovers. The positive turn in investor sentiment – helped by thin markets - is supporting the risk adverse aussie and weakening the safe haven yen. However, AUDJPY has hit an important resistance zone just below 95.00. The resistance zone consists of prior support and the pair’s 61.8% retracement level from yesterday’s high. If the pair fails to breach this level it may head back towards support around 94.35.

If AUDJPY does have the legs to break the aforementioned resistance zone, it could head towards resistance zones around 95.30 and then 95.50. There are some technicals that point to certain underlying strength in the pair, but only time will tell. From a fundamental standpoint, AUDJPY is considered one of the ultimate risk proxy pairings, thus the tone of investor sentiment, especially when European and North American markets come online tonight, may dictate the short-term direction of the pair.

Source: FOREX.com

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