AUD/JPY isn’t buying the oil surge…

AUD/JPY, the global risk barometer, is trading sideways despite the rise in oil prices to 16-month highs on the global oil deal. 

Hovers around 86.00

The cross clocked a high of 86.07 and was last seen trading just below 86.00 levels. Friday’s high stands at 86.09.

Oil prices spiked after OPEC and non-OPEC producers agreed to cut output for the first time since 2011. Oil rally usually bodes well for the risk assets. 

However, the lacklustre action in the AUD/JPY cross today could be suggesting otherwise. 

AUD/JPY Technical Levels

A break below 85.73 (session low) would expose the downward sloping weekly 100-MA of 85.50, under which the losses could be extended to 84.33 (weekly 5-MA). On the higher side, acceptance above 86.00 could yield 86.70 (March high) and 87.00 (zero figure).