AUD/JPY peeps above 80.00 as Yen slide continues

Backed by a rise in Fed rate hike bets, the offered tone around Yen remained intact in Asia, pushing the AUD/JPY cross to a high of 80.27 levels.

Supported by 76.4% Fibo

The cross found takers around 79.42 (76.4% of Brexit day drop) yesterday following which prices jumped to a high of 80.07 and extended gains further in Asian session today. Major part of the Yen weakness in last two weeks has been blamed to stimulus expectations.

However, strong US data off late has also pushed up December Fed rate hike bets to 42%. This added further to the bullish move in USD/JPY. Meanwhile, weakness in Aussie is relatively less as markets do not expect a double barreled stimulus in Australia.

AUD/JPY Technical Levels

Acceptance above 80.77 (Monday’s high) could yield rally to 81.08 (100-DMA), above which a strong resistance at 81.58 (Brexit day high) stands exposed. On the other hand, a breakdown of support at 80.00 would expose 79.42 (76.4% of Brexit day drop), under which the cross could target 79.00 (zero figure).