AUD/JPY: Recovery appears capped below 10-DMA

The cross in the AUD/JPY appears to stall its recovery from ahead of 76 handle, and now deflates from highs posted just below 10-DMA at 76.72.

AUD/JPY tracks AUD/USD higher

The AUD/JPY pair trades +0.13% higher at 76.58, having built onto yesterday’s gains. The AUD/JPY cross trims gains, although remains well bid solely on the back of moderate gains seen in the AUD/USD pair. While USD/JPY lacks direction and trades muted, providing little impetus to the upbeat momentum.

Meanwhile, the cross remains stuck in a 100-pips tight range on 0.76 handle so far this week, with markets awaiting the risk event in the Jackson Hole Symposium and Yellen’s speech to provide fresh triggers for a decisive break on either side. While crucial US economic releases may also provide some momentum on the prices.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 76.72 (10-DMA) and above which it could extend gains to at 77.23 (20-DMA).To the downside immediate support might be located 76.15 (daily S1) below that at 75.50 (psychological levels).