AUD/JPY: Rebound from 50% Fibo support

Yen bears are making their presence felt in Asia following hawkish comments from Fed’s Bullard owing to which the AUD/JPY cross rebounded from 77.00 (50% of Brexit day high-low).

Trades around 77.40

The bird is on the front foot, hovering around 77.40 as I write. The uptick is largely due to broad based weakness in Yen as the AUD/USD pair is trading largely flat. Australian wage price index for Q2 came-in as expected at 0.5% q/q, but the data was largely ignored by the markets.

Given the light data calendar today, the cross could move in line with USD/JPY pair ahead of the FOMC minutes release.

AUD/JPY Technical Levels

A move above 50-DMA resistance at 77.90 would open doors for 78.68 (Aug 8 high). A violation there could yield move to 79.00 handle. On the lower side, a break below 77.00 (zero figure + 50% Fibo) would shift risk in favor of a drop to 76.50 (Aug 2 low) would expose major support at 75.93 (38.2% Fibo).