AUD/JPY finds takers around 10-DMA

AUD/JPY cross rebounded from 10-DMA level of 79.22 levels to print a session high of 79.45, thgus suggesting good times lie ahead in the day for risk assets.

Risk assets are on the rise

Major Asian equity markets – Nikkei, Asutralia’s S&P/ASX 200 – are trading poisitive. FTSE 100 futures and S&P 500 futures are trading marginally higher as well. The uptick in these risk assets is in line with the signals given by AUD/JPY pair – risk barometer.

At the time of writing, the cross was struggling to extend gains above 79.40. A weaker Yuan fix could be capping the gains in the Aussie.

AUD/JPY Technical Levels

A break above 79.51 (Friday’s high) would open doors for 79.73 (Oct 14 high) beyong which a major hurdle stands at 80.00 (psychological level + last week’s high). On the lower side, failure to hold above 5-DMA level of 79.36 could yield a re-test of 79.00, under which losses could be extended to 78.72 (Friday’s low).