AUD/JPY – Stuck between pivot and pivot support

AUD/JPY cross rebounded from the low of 76.84 and now trades around 77.15, but on a larger scheme of things it remains stuck in a range of 77.50 (monthly pivot) and 76.31 (monthly pivot support).

Rejected at 50-DMA

The cross was rejected yesterday at confluence of 50-DMA and monthly 50-MA located at 77.50 following the pair trimmed gains, but did manage to close above 77.00 handle.

Offered tone around Yen gathered pace in Asia helping the cross score gains above 77.00 levels although caution exists on account of banking concerns in Europe. Ahead in the day, the cross would be at the mercy of news flow related to Deutsche Bank and oil-led risk-on/risk-off in the markets post Algeria meeting. The focus would also be on US durable goods orders data and Yellen testimony.

AUD/JPY Technical Levels

A convincing break above the ceiling of the recent two-week range of 77.50-76.31 would open doors for 78.68 (Aug 8 high), above which a major hurdle is noted at 79.13 (Sep 6 high). On the other hand, a breakdown of support at 76.85 (Asian session low) could yield a test of 76.31 (monthly pivot S1). A violation there on daily closing basis would open doors for 74.88 (monthly pivot S2).