AUD/JPY upside momentum runs into the key daily moving averages
The pair has made some good progress to the upside this week, building on the post-RBA bounce as the yen side of the equation also lags as the market continues to brush aside fears surrounding the coronavirus outbreak.
Notably, the added push higher today after the positive news on US-China trade sees price run into key resistance levels from the 100 and 200-day MA.
That is what is helping to limit gains on the day with the 100-day MA (red line) @ 74.33 and the 200-day MA (blue line) @ 74.43. There is also some added resistance from the 50.0 retracement level of the recent swing move lower @ 74.33 too.
Despite the more positive risk momentum today, the key levels above may prove to limit gains in the pair for now. AUD/USD is also caught around 0.6750 as such and just be mindful that there are large expiries rolling off at that level for said pair today as well.
As such, barring any major extension in risk trades and USD/JPY breaking 110.00, we may see gains level off for now until there is another catalyst for either a push higher in risk or a downside turn on any potential return of coronavirus concerns.
