AUD/JPY’s reversal from 74.70 is contained above 74.20

Australian dollar fails at 74.70 for the second day in a row and pulls back to 74.20.
The aussie loses momentum as risk appetite falters amid growing coronavirus cases in the US.
AUD/JPY consolidates above recent ranges after a 1.4% rally earlier this week.

Guillermo Alcala FXStreet

The AUD/JPY has been capped at 74.70 for the second consecutive day on Thursday and the pair retreated during the US trading session although it remains steady above 74.20. On a bigger picture, the aussie is consolidating gains after a 1.4% rally earlier this week.

The aussie loses ground as risk appetite falters

The risk-sensitive Australian dollar has been buoyed by positive macroeconomic indicators this week, yet with the looming concerns on a second COVID-19 wave, weighing on sentiment.

The AUD/JPY opened the day on a strong footing, practically unaffected by downbeat expected Australian trade balance data. Australian trade balance declined to 8,025 M in June from the 8,800M surplus reported in May, against market expectations of an increase to 9,000M

The pair rushed up during the European session to retest Wednesday’s high at 74.70 before pulling back again as the market shifted its focus on the increase of coronavirus infections in the US.

AUD/JPY limited below 74.70 resistance

On the upside, immediate resistance lies at 74.70 (Jul. 1 high) and above here, 75.05 (Jun. 16 high) and 75.60 (Jun. 10 high). On the downside, immediate support lies at 74.20 (intra-day low) and below here, 73.90 (Jul 1 low) and 73.18 (Jun. 30 low).

AUD/JPY key levels to watch

AUD/JPY

Overview
Today last price	74.43
Today Daily Change	0.11
Today Daily Change %	0.15
Today daily open	74.32

Trends
Daily SMA20	74.24
Daily SMA50	71.83
Daily SMA100	70.22
Daily SMA200	72.3

Levels
Previous Daily High	74.7
Previous Daily Low	73.92
Previous Weekly High	74.42
Previous Weekly Low	72.73
Previous Monthly High	76.79
Previous Monthly Low	71.61
Daily Fibonacci 38.2%	74.22
Daily Fibonacci 61.8%	74.4
Daily Pivot Point S1	73.92
Daily Pivot Point S2	73.53
Daily Pivot Point S3	73.14
Daily Pivot Point R1	74.7
Daily Pivot Point R2	75.09
Daily Pivot Point R3	75.49

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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