AUD/JPY - Recovery from 4-day low is being capped by bearish MA crossover
|The recovery in the AUD/JPY pair from the 4-day low of 87.65 is running out of steam in Asia, courtesy of the bearish 50-MA and 200-MA crossover on the 1-hour chart.
Stuck at 4-hr 50-MA
The cross has been rejected at the 4-hr 50-MA level of 88.21 in Asia, but remains above 88.00 handle. BOJ minutes called for maintaining the easing bias given the inflation remains well below the 2% target. The dovish tone is helping AUD/JPY maintain the bid tone despite rejection at the 4-hr 50-MA level and the bearish 1-hr 50-MA and 200-MA crossover.
The data docket is thin in Asia. Hence, the focus remains on the broader market sentiment, which as of now remains in favor of the risk assets.
AUD/JPY Technical Levels
A break above 88.21 (4-hr 50-MA) would open up upside towards 88.42 (5-DMA). An end of the day close above the same would signal the technical correction is over and expose the recent high of 89.32 levels. On the downside, breach of support at 88.00 (zero levels) could yield a sell-off to 87.65 (previous day’s low) and 87.54 (23.6% Fib R of 81.78-89.32).
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