AUD/JPY is creeping higher this Wednesday morning and was last seen trading the 1-hour 50-MA level of 85.42.
Moreover, the cross has failed at the 1-hour 50-MA at least thrice in the last 48 hours, hence it will be interesting to see if it finally manages to break higher or suffers another failure.
The Yen is on the back foot and is fuelling the rise in the AUD/JPY cross, however, caution ahead of Trump speech could limit the rise.
AUD/JPY Technical Levels
Monday’s gravestone doji candle suggests we take the gains witnessed today with a pinch of salt. Only a daily close above 85.92 (Monday’s high) would overshadow the gravestone doji formation and open the doors to 86.61 (Dec 12 high) and then to 87.00 (zero figure).
On the other hand, a breakdown of support at 85.23 (1-hour 100-MA) would expose support at 84.86 (10-DMA) and 84.57 (Jan 6 low). In terms of technical patterns, we also have a sideways channel (85.15-85.47) on the hourly chart.
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