AUD/JPY – Stuck at 23.6% fib retracement of Trump rally

The offered tone around the Japanese Yen gathered pace in Asia, pushing the AUD/JPY higher to 85.00 (23.6% of Nov 9 low – Dec 15 high).

However, the bullish move is faltering at the 23.6% fib retracement level.

The Australian data released earlier today showed the trade balance swung to a surplus of $1.2 billion in November. The positive surprised calmed fears of recession and added somewhat to the bid tone around the Aussie dollar.

Moreover, the positive action in the AUD/JPY cross, a risk barometer, suggests the equity markets may remain well bid ahead of the non-farm payrolls release.

AUD/JPY Technical Levels

The cross was last seen trading just below 85.00 handle. A break above the psychological level would open the doors to 85.45 (previous day’s high) and then to 85.71 (Jan 4 high). On the other hand, a breakdown of support at 84.88 (hourly 100-MA) would expose support at 84.59 (hourly 200-MA) and 83.74 (Dec 12 low).