AUD/JPY hammered to 79.50 post-JP GDP, China trade eyed

The demand for the Japanese yen returned to the markets this Wednesday, which drowned the AUD/JPY cross deeper into the red zone, way below 80 handle.

AUD/JPY drops from 4-day highs

The AUD/JPY pair now sinks -0.62% to fresh session lows of 79.53 struck last minutes, with the bulls having failed to resist above 80 mark. The cross in the AUD/JPY brought an abrupt end to its two consecutive sessions of rebound from four-month troughs and slumped this session, largely driven by a solid comeback staged by the yen against its US counterpart following the release of upbeat Japanese Q1 GDP figures.

The Japanese economy expanded 0.5% q/q in Q1, coming in slightly better than the 0.4% reading seen previously. On yearly basis the economy grew 1.9% last quarter.

Moreover, a minor correction in the AUD/USD pair after yesterday’s RBA-backed rally, also exacerbated the pain in the cross. Meanwhile, the immediate focus now remains on the Chinese trade balance data due out shortly for further momentum on the Aussie.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 80.45/50 (daily S1) and above which it could extend gains to at 81 (round number).To the downside immediate support might be located 79/79.10 (round number/ 5-DMA) below that at 78.04 (multi-month low).