AUD/JPY retreats from 7-month high

The AUD/JPY cross retreated from the 7-month high of 83.48 to trade around 83.00 handle.

Snaps Three-day winning streak

The cross has put an end to a three-day winning streak in Asia, although the move lower in Asia largely appears to be chart driven.

The sharp sell-off in the Japanese Yen amid the broad based USD rally pushed the cross above the critical resistance level of 82.60. The data docket is thin across Asia, Europe and in the US; hence the technical factors may have a more say in determining the exchange rate.

AUD/JPY Technical Levels

A break above 83.48 (previous day’s high) would open doors for a rally to 84.05 (38.2% of 2014 high – 2016 low). Further gains could run into resistance at the psychological level of 85.00. On the lower side, breakdown of support at 82.60 (previous week’s high) would shift risk in favor of a drop to 82.00 (zero figure) and 81.10 (Nov 18 low).