AUD/JPY sees 1-big figure rally on JP stimulus hopes

The cross in the AUD/JPY finally broke its overnight consolidative phase to the upside, extending gains into a third straight day today, as AUD/USD’s recovery combined with broad yen selling adds to the ongoing bullish run.

AUD/JPY testing 50-DMA barrier

The AUD/JPY pair now rises 0.88% to 78.14, having found solid support near 77.20 region. The AUD/JPY cross receives double impetus this Tuesday, with the extended economic stimulus backed rally in USD/JPY collaborating to a solid recovery staged by the AUD/USD pair.

The USD/JPY pair extends its upbeat momentum amid rallying Japanese stocks on additional stimulus reports. While the Aussie rebounds on a profit-taking rally ahead of the Chinese trade data due for release tomorrow, while upbeat NAB business confidence data also underpins the bullish move.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 78.60 (daily R2) and above which it could extend gains to at 79 (round figure).To the downside immediate support might be located 77.22 (daily low) below that at 76.84 (20-DMA).