AUD/JPY taking on the 74.90s as bulls firm their grip despite COVID-19 risks

AUD/JPY is taking up higher grounds towards a key resistance om the charts.
Risk-off is yet to kick in following negative implications the spread of Covid-19 in Australia.

Ross J Burland FXStreet

AUD/JPY has had a mixed start to the week, initially losing its footing on a marginally bid-up yen, then taking off from the lows (74.45), rallying to a high of 74.75 so far.

The weekend headlines are contrary to the move, but as full markets engage, they could hamstring bullish attempts in AUD.

While the US diabolical coronavirus situation is taking up the global front pages, domestic cases in Melbourne and the state fo Victoria are spread across the national papers.

Victoria's second wave 'a threat to overall Australian economic recovery': IBISWorld stated.

IBISWorld analyst Yin Yeoh has taken a look at the Australian Covid-19 economic recovery:

The second wave of Covid-19 cases in Victoria is a threat to overall Australian recovery. It underscores just how quickly this virus can return, and should make other states and territories wary of relaxing quarantine measures too quickly ...

While Victoria has been the first Australian region to experience a second wave ... it is unlikely to be the last. Local outbreaks and lockdowns are likely to be the new normal for some time.

Yeoh’s report includes this breakdown:

In 2018-19, Victoria contributed 23.7% of Australia’s national GDP, with most of this productivity occurring in the wholesale (18.7%), retail (13.7%), construction (13.5%) and manufacturing (12.8%) divisions.

Overall Australian GDP is expected to decline by 1% in 2020-21, before recovering by 4.3% in 2021-22.

Meanwhile, the Aussie is a compelling chart, resting at critical resistance following a surge of some 28% since it started to recover from the COVID-19 lows in March.

We have the Reserve Bank of Australia this week, so markets will be looking for any hints from them as to their stance on the strength of the currency.

What you need to know for the open: Summer lull or a COVID-19 tidal wave of panic-vol?

Chart of The Week

Chart of The Week: AUD/USD traders enter the barroom brawl

AUD/JPY levels

Overview
Today last price	74.75
Today Daily Change	0.15
Today Daily Change %	0.20
Today daily open	74.6

Trends
Daily SMA20	74.08
Daily SMA50	72.07
Daily SMA100	70.23
Daily SMA200	72.32

Levels
Previous Daily High	74.7
Previous Daily Low	74.33
Previous Weekly High	74.71
Previous Weekly Low	73.36
Previous Monthly High	76.79
Previous Monthly Low	71.61
Daily Fibonacci 38.2%	74.56
Daily Fibonacci 61.8%	74.47
Daily Pivot Point S1	74.38
Daily Pivot Point S2	74.17
Daily Pivot Point S3	74.01
Daily Pivot Point R1	74.76
Daily Pivot Point R2	74.92
Daily Pivot Point R3	75.13

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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