AUD/JPY: Supply caps minor-recovery near 5-DMA

The AUD/JPY cross eases from daily tops reached near 5-DMA (86.49), mainly tracking the retreat in the USD/JPY pair amid a renewed risk-off wave, as we head towards the European opening bells.

AUD/JPY eyes Australian Q4 GDP

The AUD/JPY pair advances +0.24% to 86.25, reversing a minor dip to 86.15 region. The cross keeps its recovery mode intact and reverses almost a quarter of last Friday’s decline, largely on the back of solid gains seen in the Aussie, following the release of a much bigger-than  expected jump in the Australian corporate operating profits numbers.

However, over the last hours, the spot trimmed gains as jitters surrounding the Scottish referendum appears to have hit markets once again in early Europe, lifting the safe-haven bids for the yen and therefore, driving the yen crosses lower across the fx space.

The cross is likely to get influenced by the risk trends ahead of the US durable goods, pending home sales data and Fed official Kaplan’s speech lined up later in the NA session.

Technical Levels

Higher side: 86.44/49 (daily high/ 5-DMA), 87 (round figure)

Lower side: 86.13 (50-DMA), 85.88 (daily S2)