AUD/JPY – exhaustion near hourly 200-MA hurdle

The corrective move in the AUD/JPY is facing exhaustion near the key technical hurdle of hourly 200-MA at 76.70 due to comatose action in the USD/JPY pair.

Markets await Yellen

Dollar-Yen pair is trading largely unchanged on the day, while the Aussie dollar is up marginally against the greenback. Overall, there is little action out there as investors await Yellen speech.

Markets have positioned for hawkish comments which is evident from the drop in gold and silver prices. The precious metals are almost always more sensitive to rising yields (interest rates) than any other asset.

Moreover, hawkish Yellen is the last best hope for Yen bears given the BOJ and Japanese government already stand exhausted.

AUD/JPY Technical Levels

The pair was last seen trading around 76.6 levels. A break above hourly 200-MA level of 76.70 would open doors for a rise to 77.56 (Aug 17 high), above which gains could be extended to 78.63 (Aug 11 high). On the other hand, breach of support at 76.50 (hourly 50-MA + 100-MA) could yield a move lower to 76.00, which if breached would expose 75.04 (July 8 low).