AUD/JPY rejected once again near 86 handle

AUD/JPY’s struggle to rise above 86 handle lost legs in the European session, sending the rate back below daily R1 located at 85.80 levels.

AUD/JPY supported on AUD/USD strength

The AUD/JPY pair now advances +0.35% to 85.75, flirting with session lows struck at 85.74 last minutes. AUD/JPY retreats from three-week highs, largely on the back of renewed weakness seen in the USD/JPY pair, as the USD index erased most of its intraday gains.

However, the cross manages to remain well bid in wake of ongoing bullish wave seen behind the AUD/USD pair, as the Australian dollar benefits from upbeat Aus building consents data, despite slightly risk-off market profile.

The AUD/JPY cross will get influenced by the broader market sentiment ahead of the US jobs data and Fedspeaks due later in the NA session.

Technical Levels

Higher side: 86 (zero figure), 87.17 (Dec 16 high)

Lower side: 85.38 (5-DMA), 84.91 (10-DMA)