AUD/JPY - price action has established 85.00 levels as strong support

AUD/JPY cross staged a rebound from near 85.00 levels for the third straight session, although the upside is being capped around 85.30 levels.

The Japanese Yen outperformed the Aussie amid the unwinding of the Trump trade. Consequently, the AUD/JPY cross enjoyed a three-week losing streak

However, the bearish momentum ran out of steam at 85.00 levels in the previous two sessions. A similar exhaustion has been seen today as the cross recovered from the low of 85.05 to 85.25 levels.

The Aussie data calendar is thin; hence the cross remains the mercy of the broader market action - unwinding of Trump trade”.

AUID/JPY Technical Levels

A break above 85.28 (1-hr 50-MA) would expose 85.47 (1-hr 200-MA), above which the gains could be extended to 85.60 (hourly chart hurdle). On the other hand, a breakdown of support at 85.00 (zero levels) would open the doors to 84.55 (Jan 5 low) and then to 84.25 (50-DMA).