AUD/JPY clocks 6-week high

AUD/JPY clocked a 6-week high of 78.84 in Asia, extending an eight-day winning streak which saw the cross cover ground from 76.10 to 78.78.

Yen sellers behind the rally

The winning streak could be explained by broad based Yen selling that has been set in motion following the rebound in USD/JPY from 100 levels. Aussie has been relatively strong as compared to Yen in the face of broad based USD rally, which further added to the bid tone around AUD/JPY.

As for today, the big slide in the Australia services PMI for August reported earlier today is capping the gains in the pair. The cross printed a session low of 78.53 and now trades around 78.71 levels.

AUD/JPY Technical Levels

A break above psychological hurdle of 79.00 could yield a test of supply around 79.42 (76.4% of Brexit day drop), beyond which the magical figure of 80.00 could be put to test. On the lower side, 78.08 is a strong support, given the confluence of 61.8% Fibo and 5-DMA, which if breached could yield 77.70 (50-DMA). Further losses could run into support of 77.37 (10-DMA).