AUD/JPY side-lined below 85.00, Healthcare vote eyed

The AUD/JPY cross is seen clinging onto recovery gains, although failed to hold above 85 handle as losses in the AUD/USD pair limits the upside.

The commodity-linked Aussie remains on the offers, despite risk-on rally in the Asian equities, as the entire base metals complex remains under pressure. Moreover, the recovery remains capped as the bulls take a breather before the US House vote on the Healthcare plan.

Meanwhile, a solid comeback staged by the USD/JPY pair helps keep the sentiment underpinned around AUD/JPY. Looking ahead, the cross now awaits the US macro news and FOMC member Evans’ speech for further momentum.

Technical Levels

Higher side: 85.90/86 (100-DMA/ zero figure), 86.50 (50-DMA/ psychological levels), 87 (round number)

Lower side: 85 (key support), 84.49/47 (Jan 5 & 6 lows), 84.02 (multi-week lows)