AUD/JPY is working hard to extend 5-day winning streak

The strength in the Japanese Yen is the culprit here, making it hard for the Aussie bulls to push the AUD/JPY cross higher for the 6th straight day. 

The currency pair ended higher at 86.17 on Thursday, marking a five-day winning streak. During the overnight trade, the pair hit a high of 86.54 before the Japanese Yen started gaining ground amid broad based USD sell-off. 

Consequently, the cross hit a low of 85.95 in the Asian session today, before the upbeat China manufacturing and non-manufacturing PMI data boosted the risk appetite and the demand for the Aussie, thus pushing the cross higher to 86.36 levels. 

The pair was last seen trading around 86.30 levels; up 0.10% on the day. The cross may end higher for the 6th straight season if the upbeat China data lifts stock markets across Europe and in the US. 

AUD/JPY Technical Levels

A break above 86.64 (161.8% Fib ext. of Apr low - May high- May low) would expose 87.00 (zero levels) and 87.49 (Mar high). On the other hand, a break below 85.95 (session low) would shift risk in favour of a technical pullback to 85.68 (previous day’s low) and 85.08 (June 20 high). The daily RSI is overbought, hence the odds of the cross failing near the 86.64 (161.8% Fib ext. levels) are high.