AUD/JPY: spiking to test weekly 20 sma 77.74

AUD/JPY has penertrated the resistance of the mid point on the 77 handle and has reached through the 100 dma at 77.68 and highest level since the start of the month.

Yen crosses rallied in early Tokyo and Pacific morning with thinner conditions and limited supply, enabling AUD/JPY to extend the reversal of September's downtrend from space on the 79 handle post the BoJ disappointment and announcements and create a wider range within the past three bid sessions so far. However, as pointed out by analysts at Westpac, "Both AUD/USD and USD/JPY are likely to keep a close eye on the Fed outlook, though there seems to be more fresh air below on USD/JPY than above on AUD/USD," adding, "Our 1 month AUD/JPY target of 75 assumes USD/JPY 98 and AUD/USD 0.77."

AUD/JPY levels

AUD/JPY has been trading in a narrow intraday range of between 79 and 75.90, consolidating the Oct 2014 bear trend to 72.37 and 2016 lows. The weekly 20 sma is being tested to the upside while pacing through the 4hr ma's and 200 ma at 77.15 while spot is presently trading at 77.73. 

The next resistance can be seen at 77.75 (Daily High), 78.02 (Daily 100 SMA), 78.21 (Daily Classic R2), 78.28 (Weekly Classic R2) and 78.63 (Monthly High). Next support to the downside can be found at 77.64 (Weekly Classic R1), 77.60 (Daily Classic R1), 77.52 (Yesterday's High), 77.46 (Daily Open) and 77.46 (Weekly High).