AUD/JPY: Better bid, but capped below 85 handle
|- Bid on broad Yen weakness.
- Weaker USD underpins.
- Upside capped by negative Asian stocks.
- Risk-off seeping back?
The AUD/JPY pair extended its recovery mode into a second straight session on Friday, but further upside appears to lack follow-through, as most traders remain on the sidelines, in the wake of Thanksgiving holiday-break.
AUD/JPY: Bears back in control
The cross in AUD/JPY remains on the front foot amid broad-based selling seen in Japanese Yen, as the renewed strength seen in the Treasury yields weigh downs on the safe-haven currency. Meanwhile, markets also ignored upbeat Japanese manufacturing index and BoJ headlines, citing that the BoJ trimmed the bond purchases by JPY 10 billion.
However, the bulls lack the fresh impetus to take on the recovery above 85 handle, as the AUD/USD pair remains on the defensive in absence of fresh catalysts and negative Asian equities, which suggest that the risk-off sentiment could return to the market in the day ahead.
In the day ahead, the pair will get influenced by the sentiment on the global stocks amid a lack of significant fundamental drivers and light trading.
AUD/JPY Technical View
Higher-side: 85.28/33 (Nov 21 & 22 top), 85.50 (psychological levels), 85.96 (200-DMA)
Lower-side: 84.47 (5-month lows), 84.00 (round number), 83.76 (March lows)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.