The AUD/JPY erased gains and now trades flat to negative on the day as the Yen picked up a bid, tracking losses in the S&P 500 futures and Asian equities. How is the pair now trading? Learn this from the 5 March AUDJPY Technical Outlook.
5 March, GKFX – As of writing, the AUD/JPY is trading at 81.81. The S&P 500 futures are down 0.33 percent as the trade war fears continue to dominate the market sentiment. Meanwhile, stocks in Australia are down 0.45 percent, while Hong Kong’s Hang Seng has lost 1 percent.
Also, Shanghai Composite is trading flat to negative. Thus, USD/JPY pair has retreated to 105.48 from the session high of 105.68.
China services PMI release offers no help to the AUD
Further, the China services PMI for Feb came in at 54.2, missing the estimate of 54.3 expected and failed to boost the demand for the Aussie dollar. Consequently, the AUD/JPY pair has faded to the spike to 82.07 (session high). Ahead in the day, the cross may remain under pressure if the equities remain risk-averse on account of trade war fears.
5 March AUDJPY Technical Outlook
The 4-hour chart shows a bullish price RSI divergence. So, a break above 82.27 (1-hour 50-MA) could yield a sustained rally to 82.61 (resistance on 1-hour) and 82.94 (1-hour 100-MA). On the downside, breach of support at 81071 (support on 1-hour) would shift attention to 81.56 (Friday’s low) and 81.00 (psychological support).
This article 5 March AUDJPY Technical Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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