AUD/JPY - Three-day losing streak stalls in Asia, risk-on ahead?
|The three-day losing streak in the AUD/JPY appears to have run out of steam in Asia, suggesting the risk sentiment may be restored during the day ahead.
The currency pair was last seen trading 0.10% higher on the day at 84.04 levels. The 0.10% gain in the S&P 500 futures this Friday morning in Asia adds credence to the positive action in the AUD/JPY cross.
The Japanese Yen could find fresh sellers in Europe as the stocks might cheer upbeat Fed stress test result. Moreover, it is widely seen giving ammunition to Trump administration for scaling back post crisis rules.
Meanwhile, moderate gains seen in the oil benchmarks, if extended in Europe, could trigger short unwinding in the energy and metal shares ahead of the weekend. Therefore, the odds are high that the AUD/JPY cross would extend gains during the day ahead.
AUD/JPY Technical Levels
A break above 84.27 (previous day’s high) would expose 84.54 (May 2 high) and 85.08 (June 20 high). On the other hand, a break below 83.82 (23.6% Fib R of June 6 low and June 20 high) would open up downside towards 83.61 (May 15 low) and 83.00 (zero levels).
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