AUD/JPY – Rejected at 1.5 year long trend line hurdle
|Aussie-Yen pair failed twice this week to hold above the trend line coming from May 2015 high and Nove 2015, thus making it a critical reistance to watch out for in the short-term.
Stuck at 5-DMA
Recovery from the low of 79.19 is being capped by 5-DMA level of 79.48 in Asia. Offered tone around Yen is the main driving factor of the cross. Aussie remains flat against the greenback following yesterday’s dismal jobs report. Overnight sell-off in oil and lacklustre action in copper is not helping the matters either.
Given the empty data docket in Asia, the cross remains at the mercy of the action in the Dollar-Yen pair, which as of now is trading above 104.00 and looking northwards.
AUD/JPY Technical Levels
In terms of technical patterns, we have a double top formation on the hourly chart with neckline support at 79.14. Break below 79.06 (10-DMA + 23.6% of 75.97-80.02) could yield a much deeper retracement to 78.81 (Oct 17 low) and 78.47 (38.2% of 75.97-80.02). On the higher side, breach of 5-DMA at 79.48 would open doors for 79.73 (Oct 14 high) and 80.02 (Oct 18 high).
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