AUD/JPY - Four-day sell-off stalls at 38.2% Fib support

The offered tone around the AUD/JPY pair ran out of steam this Wednesday morning in Asia around 88.45 [38.2% Fib R of Aug 11 low - Sep 21 high]. The currency was last seen trading at 88.62 levels.

The recovery from the low of 88.25 to 88.62 could be due to chart factors [oversold intraday conditions].

The official data released in China a few minutes ago showed the industrial profits rose 24% y/y in August vs. 16.5% in July. The upbeat data hardly moved the Aussie.

As per Reuters BUZZ, the Japanese retail interest in AUD remains low for now. This is hardly surprising, given the weakness in gold prices. The repeated flaring up of tensions in the Korean Peninsula also weighs over the higher yielding currency like the Aussie.

Still, the uptick in the AUD/JPY cross is encouraging as it could mean the risk assets across Europe and in the US could regain the bid tone, although it remains to be seen if the pair manages to hold on to gains till early European session.

AUD/JPY Technical Levels

The daily chart shows a bearish 5-DMA and 10-DMA crossover.

Support levels - 88.45 (38.2% Fib R), Flat daily Ichi kijun 88.00, ascending 55-DMA below at 87.73

Resistance levels - descending 55-HMA at 88.82 though, 89.02 100-HMA, descending hourly Ichi cloud weighs too, 88.79-89.02 currently.