AUD/JPY - Range trading continues
- AUD/JPY mildly bid above 88.00.
- AUD relatively resilient against USD.
- But 88.50-87.70 range still intact.
Currently, AUD/JPY is up 0.14 percent at $88.07, largely due to an uptick in the USD/JPY pair and a flat AUD/USD pair.
The USD/JPY pair is up 0.13 percent seemingly due to the Fed's upward revision of the inflation outlook. Meanwhile, the Aussie dollar is relatively resilient, despite a big drop in the building permits (reported earlier today). Thus, the AUD / JPY cross is mildly bid in Asia.
That said, the trading range of 88.50-87.70 is still intact. Considering the double top formation around 89.00, the pair will likely end the trading range with a downside break.
AUD/JPY Technical Levels
A close above 88.50 (upper end of the trading range) would open up upside towards 89.00 (established as strong resistance by multiple daily highs). A violation there could yield 90.30 (Sep. 21 high). On the other hand, a break below 87.70 (lower end of the range) would expose support at 87.46 (Jan. 30 low) and 87.34 (100-day MA).