AUD/JPY heavy, breaks through daily pivot

The cross in the AUD/JPY extends its Asian retreat as we head into early Europe, mainly driven fresh buying seen around the yen across the board.

AUD/JPY accelerates the slide below 5-DMA at 85.55

The AUD/JPY pair now drops -0.34% to fresh daily lows of 85.23, having met fresh supply once again near 85.75 region. AUD/JPY slumps to lows in tandem with the USD/JPY pair, as the yen regains ground after the Japanese cabinet office raise the economic assessment for the first time since March 2015. Its views on household spending, exports and business sentiment have all been upgraded.

While AUD/USD reversed gains and trades muted, despite a slight uptick in commodities’ prices, providing little support to the AUD/JPY cross. While broad based US retreat also fails to lift the sentiment around the cross.

Technical Levels

Higher side: 85.75 (daily high), 86.17 (Dec 16 high)

Lower side: 85 (zero figure), 84.69 (previous low)