AUD/JPY regains poise, focus on US elections

AUD/JPY opened the week lower at 79.17 before recovering losses to trade around Friday’s close of 79.52 levels.

Stuck at 5-DMA

The cross is working hard to chew through 10-DMA level of 79.55. Demand for Yen spiked on Friday and remained strong in early Asia after FBI re opened investigation of Clinton emails.

Experts said the race to White House tightened following the FBI news, however, there it is believed that the FBI concerns would not damage Clinton’s odds significantly.

Consequently, the risk barometer - AUD/JPY cross recovered losses, suggesting markets are not worried about FBI news.

AUD/JPY Technical Levels

A break above 79.71 (5-DMA) would expose 80.00 (zero figure) levels, above which a major resistance at 80.31 (Oct 26 high) could be put to test. On the lower side, breach of support at 79.17 (Asian session low) would shift risk in favor of a drop to 78.72 (Oct 21 low). A violation there would expose 78.00 (zero figure) levels.