AUD/JPY – Offered again near 77.00 handle

AUD/JPY cross once again failed near 77.00 handle suggesting the risk sentiment remains weak post Fed minutes and ahead of China trade data release.

Trades around 78.70

The pair was last seen trading around 78.70 levels. Fed minutes released overnight said holding rates unchanged in September was a ‘close call’. The minutes did not indicate the timing of the rate hike, but markets still believe the next move would happen in Decemer. This is evident from Fed funds futures which put December probability around 70%.

Though Fed minutes offered little surprise, markets have faield to gather traction, which is evident from the moderately weak regional risk barometere - AUD/JPY cross. The focus now is on China trade data release.

AUD/JPY Technical Levels

The pair has failed at/near 79.00 levels for five out of seven trading days (including today). This means a break higher could yield a sharp rise to 80.22 (200-DMA), above which a major hurdle is seen directly at 81.51 (July 15 high). On the other hand, a breakdown of support at 78.46 (5-DMA) would expose 78.00 levels, under which losses could be extended to 77.83 (100-DMA).