AUD/JPY turns negative as Yen finds bids

• AUD/JPY fades spike to 82.07, now reports marginal losses. 
• Yen finds bids, USD/JPY erases gains. 
• China services PMI release offers no help to the Aussie dollar. 

The AUD/JPY erased gains and now trades flat to negative on the day as the Yen picked up a bid, tracking losses in the S&P 500 futures and Asian equities. 

As of writing, the AUD/JPY is trading at 81.81. The S&P 500 futures are down 0.33 percent as the trade war fears continue to dominate the market sentiment. Meanwhile, stocks in Australia are down 0.45 percent, while Hong Kong's Hang Seng has lost 1 percent. Also, Shanghai Composite is trading flat to negative. Thus, USD/JPY pair has retreated to 105.48 from the session high of 105.68. 

Further, the China services PMI for Feb came in at 54.2, missing the estimate of 54.3 expected and failed to boost the demand for the Aussie dollar. Consequently, the AUD/JPY pair has faded to the spike to 82.07 (session high). Ahead in the day, the cross may remain under pressure if the equities remain risk-averse on account of trade war fears. 

AUD/JPY Technical Levels

The 4-hour chart shows a bullish price RSI divergence. So, a break above 82.27 (1-hour 50-MA) could yield a sustained rally to 82.61 (resistance on 1-hour) and 82.94 (1-hour 100-MA). On the downside, breach of support at 81071 (support on 1-hour) would shift attention to 81.56 (Friday's low) and 81.00 (psychological support).