- AUD/JPY found takers around 23.6% Fib.
- Eyes China data.
AUD/JPY defended the 87.28 (23.6% Fib R of Nov-Jan rally) yesterday and jumped to a high of 88.09 before closing the day on a positive note at 87.79.
Having snapped the three-day losing streak yesterday, the pair is trading in a sideways manner around 87.80 levels.
Focus on China data
A better-than-expected China trade data may put a bid under the AUD/JPY cross. A more sustained rise above 88.00 could be seen if the details reveal a solid pick up in the imports of commodities like iron ore and copper (top Australian export).
Meanwhile, the Japanese Yen may put brakes on the ascent if the equity markets turn risk-averse due to ECB’s hawkish turn.
AUD/JPY Technical Levels
The daily chart shows a bearish 5-day MA and 10-day MA crossover, suggesting a break above 88.00 (psychological hurdle) may not be sustainable. That said, a sustained move higher would expose 88.41 (Jan. 2 high) and 89.09 (recent high). On the downside, breach of support at 87.63 (Jan. 2 low) could yield 87.28 (23.6% Fib R) and 87.22 (100-day MA).