AUD/JPY rises for third straight session, tests 100-DMA

The AUD/JPY remains well bid in Asia following a two-day winning streak and was last seen trading just above the 100-DMA level of 86.30 levels. 

AUD supported by copper and gold

Comex copper jumped to a one-week high of $2.6751/pound on Wednesday and continues to trade on the front foot around $2.6682/pound in the Asian session. Meanwhile, gold rallied from $1200 to $1260 levels over the last two weeks and now appears to be building a base around $1200 levels. The strength in the prices of the key exports - gold, copper is keeping the Aussie strong. 

Meanwhile, risk reset in the financial markets and hawkish comments from the Fed officials is hurting the Japanese Yen. The Dollar-Yen pair found takers at 111.00 earlier today and was last seen trading at 111.27 levels. The currency pair had dropped to a low of 110.10 earlier this week. 

AUD/JPY Technical Levels

A break above 85.41 (10-DMA) would expose a major resistance at 85.84 (Feb 27 low). A daily close above the same would signal trend reversal leading to a sharp unwinding of short positions. The pair could then test and possibly take out 50-DMA level of 86.30. 

On the other hand, a breakdown of support at 85.11 (session low) could yield a sell-off to 84.90 (5-DMA) and possibly to 84.67 (previous day’s low).