AUD/JPY turns negative as the Aussie bond yields surrender gains

The AUD/JPY cross now trades negative on the day around 88.90, tracking the failure on the part of the Aussie bond yields to maintain post-jobs data gains. 

The 10-year Aussie yield backed-off from the session high of 2.279% and was last seen trading around 2.754%. On similar lines, the 2-year yield clocked a high of 1.968% before falling back to 1.928%. 

Overbought conditions weighing over Aussie pairs

The jobs report, especially the full time component, underscored the labor market tightening. Still, the AUD pairs are now trading in the red. This could be due to overbought technical conditions. For example - the 14-day RSI on the AUD/JPY and AUD/USD cross extremely overbought. 

AUD/JPY Technical Levels

On the 1-hour chart, the 50-MA, 100-MA & 200-MA are still sloping upwards suggesting dips could be short lived. The 1-hour 50-MA is seen offering support at 89.02, which, if breached would expose 88.50 (5-DMA) and 88.28 (Support on 4-hour chart). 

On the higher side, an end of the day close above 89.07 (161.8% Fib extension of the June 6 low - June 20 high - June 22 low) would open up upside towards 90.02 (Apr 2011 high).