AUD/JPY clocks fresh 2-week high, eyes Aussie housing data

AUD/JPY clocked a 2-week high of 87.41 this Wednesday morning in Asia as traders are shaking off the latest North Korea provocation. 

The risk-off faded in the US session, thus the Japanese Yen is losing altitude. Meanwhile, the Aussie is mildly bid against the USD. 

The sharp drop in the Japanese Yen indicates the traders do not see a further escalation of the North Korea tensions. Nevertheless, traders would keep an eye on the news flow related to North Korea. 

Focus on Aussie housing data

The Aussie building permits are seen falling 16.6% y/y and 5.0% m/m in July. A weaker-than-expected data could yield a pullback in the AUD and vice versa. 

AUD/JPY Technical Levels

At press time, the cross was trading at 87.38 levels. A break above 87.55 [August 17 high] would open doors for 88.02 [Aug 7 high] and 88.28 [July 17 high]. On the downside, breach of support at 87.16 [1-hour 10-MA] could yield a pullback to 86.96 [50-DMA] and 86.70 [10-DMA].