AUD/JPY remains below 80.00 as Aussie plays a spoil sport

The AUD/JPY cross remains below the psychological level of 80.00 despite sharp losses in JPY as Aussie buyers refuse to join the party. 

Dragonfly Doji on daily chart

Speaking about technical patterns, the pair formed a Dragonfly Doji candle formation on the daily chart yesterday. Moreover, the pattern has been formed at the psychological resistance of 80.00. The Japanese Yen was offered against the dollar, which ensured the cross recovered from the low of 79.56, however, the heightened expectations of a blowout US GDP release also weighed over the AUD/USD pair, thus ensuring the cross remained below 80.00 levels. 

The weakness seen today is largely due to a moderate correction in the USD/JPY pair. The focus today is on the US GDP release, which is expected to show the economy could have grown at the fastest rate in two years. 

AUD/JPY Technical Levels

Acceptance above 80.00 levels on the daily chart/4-hour chart could yield a rally to 81.00 (zero figure) and 81.58 (Brexit day high). On the lower side, breach of 10-DMA support of 79.55 would open doors for a much deeper retracement to 79.00 (zero figure) and 78.72 (Oct 21 low).