AUD/JPY: 1-hr 50-MA put to test in Asia

AUD/JPY found takers for the second consecutive day below the 5-DMA, but failed to breach the hourly 50-MA level of 83.98 levels.

Offered tone around JPY gathered pace

The offered tone around the Japanese Yen gathered pace in Asia, which helped the AUD/JPY cross recover from the session low of 83.63 to print a high of 83.98 levels.

The Japanese retail sales contracted in October, but the drop was less than expected. However, the data failed to have any impact on the Yen pairs. The cross was last seen trading around 83.90 levels.

AUD/JPY Technical Levels

In terms of candlestick patterns, we see a rounding top formation on the daily chart. A break above 84.14 (38.2% of 2014 high - 2016 low) would expose 85.00 (zero figure), above which a major hurdle is seen at 86.41 (Aug 2013 low). On the other hand, a breakdown of support at 81.85 (Sep 5 low) would open doors for a sell-off to 80.00 (zero figure) and 79.72 (23.6% of 2014 high - 2016 low).