AUD/JPY - Higher low points to risk-on in the markets
|The AUD/JPY cross is on the rise this Tuesday morning after having clocked a low of 86.40 levels. The cross currently trades just above the 50-DMA of 86.68.
Higher lows
The higher low formation seen on the daily chart indicates scope for a rally towards August 17 high of 87.56.
The bullish prospects for the AUD/JPY is a good sign for the equities, given the cross is a barometer for global risk sentiment. Moreover, the uptick in the AUD/JPY also adds credence to the moderate gains on the Wall Street on Monday and the positive action in the SP 500 futures.
AUD/JPY Technical Levels
A break above 87.04 [Aug 18 high] would open up upside towards 87.55 [Aug 17 high] and 88.02 [Aug 7 high]. On the downside, breach of support at 86.39 [23.6% Fib R of July 27 high - Aug 11 low] could yield a sell-off to 85.99 [Aug 18 low] and 85.45 [Aug 11 low].
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