AUD/JPY - Weak tone persists, hovers around 50-DMA

Omkar Godbole FXStreet Contributor

AUD/JPY is trading around the 50-DMA level of 86.61 this Monday morning in Asia, as the weakness in the US index futures is ensuring the follow through to Friday’s recovery from 85.99 is weak.

Focus on broader market sentiment

The AUD/JPY cross is at the mercy of the sentiment in the equity markets today, given the light data docket in Asia. The losses in the equities would strengthen the bid tone around Yen and weigh over AUD/JPY and vice versa.

As of now, the SP 500 futures are trading flat lined. NASDAQ futures are down 0.14%. UK’s FTSE 100 futures are down 0.23%, while DAX futures are down 5 points. The losses in the major index futures are capping the upside in the AUD/JPY cross.

Meanwhile, the AUD may find buyers if gold prices retake $1300 levels today.

AUD/JPY Technical Levels

A break above 87.04 [Aug 18 high] would open up upside towards 87.55 [Aug 17 high] and 88.02 [Aug 7 high]. On the downside, breach of support at 86.61 [50-DMA] could yield a sell-off to 85.99 [Friday’s low], under which a major support is seen at 85.45 [Aug 11 low].

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Expanding
1H	Bullish	Neutral	High
4H	Bullish	Neutral	Expanding
1D	Bearish	Neutral	High
1W	Bearish	Neutral	Expanding
Updated Aug 21, 00:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD flat lines below 1.1900; divergent Fed-ECB expectations offer support

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1835-1.1830 region and oscillates in a narrow band during the Asian session on Thursday. Spot prices currently trade around the 1.1875 area, remaining nearly unchanged for the day and staying within striking distance of an over one-week high, reached on Tuesday, amid mixed cues.

GBP/USD slips heading into the Thursday trading window

The Pound Sterling pulled back from four-year highs on Wednesday, weighed down by a combination of Bank of England dovishness and UK political uncertainty, even as the US Dollar weakened on soft labor market revisions.

Gold holds losses near $5,050 despite renewed USD selling

Gold price trades in negative territory near $5,050 in Thursday's Asian session. The precious metal faces headwinds from stronger-than-expected US employment data, even as the US Dollar sees a bout of fresh selling. All eyes now remain on the next batch of US labor statistics.

Crypto trades through a confidence reset

The cryptocurrency market is navigating a liquidity-driven reset rather than a narrative-driven rally. Bitcoin, Ethereum and major altcoins remain under pressure even as new exchange-traded fund filings continue and selected inflow days appear on the tape.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

XRP sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.