The AUD is the strongest currency today overall
The AUD is the strongest of the major currencies today. It is stronger versus all the majors. The biggest gain is verse the JPY. The AUDJPY is up by 0.71%. That outpaces the next strongest - the AUDCHF - which is up 0.54%.
So what has helped the AUDJPY recover?
Looking at the hourly chart below, the pair moved below the 50% retracement of the move up from the October low yesterday at 73.697. It also fell below its 100 day moving average near the same level (blue line currently at 73.649). That combination sent the price to the lowest level since October 16 at 73.347. The tumbled lower yesterday was helped by weaker than expected employment data.
Today, the technical story is different. The price was able to move back above a lower trendline and then extend back above its 100 day moving average (blue line at 73.649 ), and broken 50% retracement level (at 73.697) as well.
The key from a technical perspective today was the retracement down to retest the 100 day moving average at 73.649, and holding that level. Traders leaned against the 100 day moving average and push the price higher. A big win for the buyers and more sellers started to reverse and turn to buyers.
What next?
For the week, the pair is still down sharply however, the waters are muddy after the failed break of the 100 day moving average. The price is currently breaking above a topside trend line at 74.027. The broken 38.2% retracement comes in at 74.162. However, the next biggest level would be to extend above the 100 hour moving average at 74.248 (and stay above).
That should be a more difficult target to get to and through on the first look.
