AUD/JPY test the 100-day moving average
Two currencies at the opposite ends of the spectrum today. Data beats and positive risk sentiment is helping lift the aussie, while the latter along with higher US yields is pinning down the yen on the day.
That has seen AUD/JPY markedly higher and moves towards a test of the 100-day MA (red line) once again. The May highs stalled at the key level before backing off to test the lows again, so this will be an important test for buyers if we are to see a further upside move in the pair.
Sitting nearby is also the 38.2 retracement level @ 83.775 so the confluence of the two resistance levels will be a pivotal region for buyers to make their way through today. This should at least put a pause in the aussie's rally so far today, but a break above will see the pair retest the March and May highs near 84.50.
AUD/JPY has been a pair that more often than not trades on risk sentiment, and right now sentiment in the market is holding up well despite the trade rhetoric brewing in the background. Despite that, the break above the 100-day MA remains a key stepping stone for buyers in abid to break back to the upside of 85.00 and above.
