AUD/JPY on the bids, but capped below 87 handle

Dhwani Mehta FXStreet

The recovery in AUD/JPY cross from Friday’s NY lows remains capped below 87 handle, as the bulls from moderate risk-aversion persisting across the financial markets so far this session.

As a result, the safe-haven yen continues to extend its strength against most of its majors, offsetting somewhat the gains witnessed in the AUD/USD pair, leaving the cross largely flat-lined in a 25-pips narrow range. The Aussie benefits from a broadly weaker greenback and upbeat Chinese home prices data released over the weekend.

Also, low volumes and minimal volatile on the back of a Japanese national holiday, adds to the side-ways movement seen in AUD/JPY. Focus now shifts towards the Fed speaks and RBA’s monetary policy minutes due to be reported over the next 24 hours.

Technical Levels

Higher side: 86.98/87 (5-DMA/ zero figure), 87.50/53 (psychological levels/ Mar 15 high), 88.17/23 (Feb 15 & 16 high)

Lower side: 86.63/56 (20 & 50-DMA), 85.85/80 (100-DMA/ Feb-end lows), 85.50 (psychological levels)

1. R3 87.20
2. R2 87.06
3. R1 86.95
PP 86.81
1. S1 86.69
2. S2 86.56
3. S3 86.44

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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