AUD/JPY comes down to test 87 handle on mixed Aus jobs

The AUD/JPY’s retreat from six-day tops of 87.47 gained further traction, following the release of the Australian employment report, which failed to impress the AUD markets.

AUD/JPY finds buyers near 50-DMA at 87.01

The selling pressure behind AUD/JPY intensified, after the mixed Aus jobs data pushed the AUD/USD pair closer towards daily lows. Australia’s July employment report: Mixed reading, full time jobs drop sharply

Moreover, persisting cautious tone seen in Asia combined with solid Japanese trade data continue to keep the demand intact for the Japanese currency, exerting further downward pressure on AUD/JPY. Japan Merchandise Trade Balance Total above expectations (¥392B) in July: Actual (¥418.8B)

However, the losses appear capped as the spot continues to hold above the key 50-DMA support, having found support from a drop in the US dollar and Treasury yields on less optimistic Fed, while higher commodities’ prices also underpin the sentiment.

Focus now shifts towards a fresh batch of US economic releases for fresh impetus on both the AUD and JPY.

Technical Levels

Higher side: 87.45 (20-DMA), 87.74 (Fib R2), 88 (round number)

Lower side: 86.73/67 (10 & 5-DMA), 85.94 (classic S2), 85.31 (200-DMA)