AUD/JPY surrenders gains after Aussie jobs data

AUD/JPY retreated from the session high of 86.21 to trade unchanged on the day around 86.00 levels following the release of the mixed Aussie labor market report.

According to the ABS, employment rose by 13,500 in December. Markets were expecting an increase 10,000. However, over the year, full time employment dropped by 34,000. Meanwhile, the unemployment rate ticked higher to 5.8%.

The mixed jobs report did little to strengthen the bid tone around the Aussie dollar. Still, the cross is able to avoid losses largely due to the uptick in the USD/JPY pair.

AUD/JPY Technical Levels

A break above the immediate resistance at 86.28 (Jan 13 high) would add credence to Wednesday’s sharp rebound from 85.00 levels and open doors for 86.61 (Dec 12 high), above which resistance at 87.53 (Dec 15 high) stands exposed.

On the downside, breach of support at 86.00 (zero figure) could yield a sell-off to 85.69 (5-DMA) and 85.36 (Jan 12 low).