AUD/JPY ends three-day winning streak

AUD/JPY cross snapped three-day winning streak in Asia as the bid tone around JPY strengthened following Kuroda’s comments, while Aussie felt the heat of broad based US dollar strength.

Nears 23.6% Fibo levels

The pair neared 79.61 levels (23.6% of 102.844-72.44) after having clocked a high of 80.04 levels. Offered tone gathered pace after Bank of Japan (BOJ) Governor Kuroda said the bank would not push down long-term rates even if they rise further. While speaking in parliament, Kuroda largely played down the need to do more in short-term, leading to strength in JPY.

Moreover, the cross was on the backfoot well before Kuroda spoke as the Aussie dollar was facing the heat of broad based USD strength.

AUD/JPY Technical Levels

Breach of support at 79.61 (23.6% of 102.844-72.44) would open doors for a 79.38 (previous day’s low), under which losses could be extended to 79.00 (zero figure). On the higher side, breach of resistance at 80.00 would opne doors for 80.31 above which a major hurdle is noted at 80.78 (July 18 high).