AUD/JPY through the roof, tests 81 handle

Dhwani Mehta FXStreet

The bid tone behind the AUD keeps growing bigger as we head into mid-Europe, sending AUD/JPY further north to fresh three-week highs near 81 handle.

AUD/JPY catches fresh bid

The AUD/JPY pair now jumps 1.86% to fresh three-week highs of 80.98, bouncing sharply from 79.50 region. The bulls remain relentless, helping AUD/JPY extend its bullish streak amid renewed buying interest in the AUD. Simultaneously the yen hit a fresh multi-week lows against the US dollar, bolstering the bids for the cross.

The USD/JPY pair marches higher amid ongoing yen weakness backed by increased helicopter money speculations, while the Aussie rebounds higher amid persistent risk-on market profile as oil and stock extend higher.

The immediate focus now remains on the Bank of England (BOE) rate decision, which is likely to spur massive volatility across the financial markets, eventually impacting the risk barometer, AUD/JPY.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 81.69 (post-Brexit highs) and above which it could extend gains to at 82 (round figure).To the downside immediate support might be located 78.98/86 (July 14 & 13 high) below that at 78.66 (5-DMA).

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.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.