AUD/JPY portrays battle of the weakest

AUD/JPY is trading confined in a narrow range, with a mild downward pressure towards the low edge of its balance area now, last trading at 79.15 day lows.

AUD, JPY weakest this week

The pair has been bracketed in a tight 35/40 pips since the last European session as a result of both the Australian Dollar and the Japanese Yen being the weakest currencies to start the week. The first as traders continue to discount further rate cuts by the RBA, while the Yen has also plummeted on improved risk sentiment.

AUD/JPY key levels

The pair is currently testing its day pivot at 79.15, with a break out of its range to expose 77.00 round number ahead of 76.80 (daily S1) ahead of 78.40/50 (mid round number + daily S2). On the upside, 79.50 continues to be a tough nut to crack (with 79.60 today's R1), ahead of critical 80.00 psychological level (Daily R2 at 79.95) and 80.40 (Daily R3 + horizontal resistance).