AUD/JPY - losing height, flirts with 76 handle

AUD/JPY is feeling gravity’s pull after ratings agencies fired warning shots about Australia’s fiscal health.

Trades around 38.2% Fibo of Brexit

The cross currently trades around 75.93 (38.2% of 81.58-72.44) levels after having clocked a session high of 76.25 levels. AUD/USD pair is on the back foot after failing to take out a key Fibo resistance at 0.7571 levels. Moreover, the currency pair is feeling the heat of Moody’s comments over Australia’s fiscal health.

Meanwhile, the USD/JPY pair is trading flat around 100.71 (50% of 2011 low – 2015 high). Consequently, the AUD/JPY cross turned lower from the high of 76.25 levels to trade just below 76 handle.

AUD/JPY Technical Levels

Acceptance below 75.93 (38.2% of 81.58-72.44) would open doors for a slide to 75.18 (July 7 low). Further slide could run into support at 74.59 (23.6% of 81.58-72.44). On the higher side, a break above daily high of 76.25 could yield rally to 77.00 (50% of 81.58-72.44). A violation there would expose 78.42 (50-DMA).