AUD/JPY revisits trend line support

Bid tone around Yen strengthened in Asia, pushing the AUD/JPY cross to 78.15, which is the descending trend line drawn from Apr 27 high to July 15 high.

Nears hourly 50-MA

The pair is trading within a touching distance from hourly 50-MA level of 78.11. a rebound from hourly 200-MA yesterday failed to take out hourly 100-MA hurdle in the NY session following which JPY demand rose.   

It remains to be seen if the cross stages another rebound from hourly 200-MA. China CPI data due today could influence demand for Aussie. Other than that the data calendar is thin, thus leaving the pair at the mercy of the technical factors.

AUD/JPY Technical Levels

Breakdown of support of hourly 200-MA at 78.06 would open doors for 77.59 (Wednesday’s low), under which the cross could target 77.00 handle. On the higher side, breach of 78.39 (daily high) could yield 79.16 (Tuesday’s high) and 80.00 levels.