AUD/JPY finds support at 10-DMA

AUD/JPY found support at 10-DMA in 86.51, but the subsequent recovery has been weak. The cross trades around 86.60 levels. 

Yen ignores drop in Machine orders

Japan’s machinery orders fell into contraction in January. The corporate investment dropped 3.2% m/m from the downwardly revised December figure of 2.1%. In annualised terms, the figure printed at -8.2%, this is well below the expectation of a 3.3% drop. 

The dismal data failed to lift Yen crosses. Moreover, volumes remain low as the data docket is light in Asia and across the globe. Yen pairs may take cues from the action in the treasury yields.

AUD/JPY Technical Levels

A break above 86.71 (Mar 3 high) would expose hurdle at 87.07 (Friday’s high) and 87.48 (Mar 2 high). On the downside, breakdown of support at 86.38 (5-DMA) could yield a pullback to 86.22 (50-DMA) and 86.00 (zero figure) levels.