AUD/JPY stuck in tight range around 50-DMA

The AUD/JPY cross stalled its decline and extended its consolidative mode in the Asian session, caught up amid a minor upward correction seen in the greenback.

AUD/JPY capped by 85.70

The AUD/JPY pair drops -0.11% to 85.46, moving slightly off session lows struck at 85.36. The cross attempts a tepid-recovery from weekly lows, but in vain, as the AUD/USD pair remains heavily offered amid broad based US dollar pullback and weaker oil prices.

However, the cross manages to find some support from the ongoing recovery in USD/JPY on 113 handle, helping AUD/JPY to keep its range around 50-DMA barrier. Next on tap for the spot remains the US datasets due on the cards later today, ahead of the FOMC policy decision.

Technical Levels

Higher side: 86.05 (10-DMA), 86.50 (psychological levels)

Lower side: 85.20 (weekly low), 84.63 (daily S2)