26 Oct 2015
AUD/JPY: Bulls struggling below 88 handle
FXStreet (Mumbai) - The AUD/JPY cross remains on the bids in the mid-European session, having found good support near the daily pivot.
AUD/JPY supported at daily pivot at 87.61
Currently, the AUD/JPY pair rises 0.18% to 87.85, unable to extend beyond 88 handle. The AUD/JPY cross keeps pushing higher, although remains capped by the 88 handle as the PBOC-backed gains in the AUD are partly offset by the strengthening Japanese yen on the back of US dollar sell-off.
However, the recovery in AUD/JPY from session lows at 87.67, received fresh impetus from stabilizing European stocks after a negative start.
Meanwhile, markets continue to digest the latest comments from Japan’s PM adviser Hamada ahead of the US new home sales data due for release later in the US session.
Mr. Hamada played down the need for additional stimulus as early as this Friday’s BOJ meet which boosted the JPY bulls further, limiting the upside in the cross.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 88 (psychological levels + Today’s High) and above which it could extend gains to 88.16 (100-DMA). To the downside immediate support might be located 87.61 (daily pivot) below that at 86.37/32 (h1 50-SMA + 5-DMA).
AUD/JPY supported at daily pivot at 87.61
Currently, the AUD/JPY pair rises 0.18% to 87.85, unable to extend beyond 88 handle. The AUD/JPY cross keeps pushing higher, although remains capped by the 88 handle as the PBOC-backed gains in the AUD are partly offset by the strengthening Japanese yen on the back of US dollar sell-off.
However, the recovery in AUD/JPY from session lows at 87.67, received fresh impetus from stabilizing European stocks after a negative start.
Meanwhile, markets continue to digest the latest comments from Japan’s PM adviser Hamada ahead of the US new home sales data due for release later in the US session.
Mr. Hamada played down the need for additional stimulus as early as this Friday’s BOJ meet which boosted the JPY bulls further, limiting the upside in the cross.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 88 (psychological levels + Today’s High) and above which it could extend gains to 88.16 (100-DMA). To the downside immediate support might be located 87.61 (daily pivot) below that at 86.37/32 (h1 50-SMA + 5-DMA).