AUD/JPY runs into 61.8% Fibo support

AUD/JPY extended seven-day winning streak in Asia, but is struggling to take out 78.09 (61.8% Fibo retracement of 81.58 (Brexit day high) – 72.44 (Brexit day low).

Risk-on sentiment intact

AUD/JPY, often viewed as a regional barometer of risk sentiment, has been rallying since Aug 24, thus indicating there is little threat out there to riskier assets. The cross clocked a high of 78.20 yesterday before retreating to 78.87 in Asian session today.

The cross is now flirting with 78.09 levels. Whether the cross sees a day end close above 78.09 depends on the US non-farm payrolls and wage growth figure due for release later today.

AUD/JPY Technical Levels

Acceptance above 78.09 (61.8% Fibo retracement of 81.58 (Brexit day high) – 72.44 (Brexit day low) would open doors for 78.91 (100-DMA). On the lower side, confluence of 5-DMA and 50-DMA at 77.61 could offer support, which if breached would shift risk in favor of a drop to 77.00 levels.