AUD/JPY extends two-day rally, eyes key hurdle

Aussie continues to scale heights in Asia, pushing the AUD/JPY cross higher towards a key resistance zone of 82.60.

Iron ore rally supports AUD

According to the Steel Index, Iron ore prices jumped 5.7% to $73.80/tonne. That seems to have kept the AUD demand intact in the Asian session.

Meanwhile, the Trump ‘reflation’ trade pushed the US stocks to record highs and that is keeping the offered tone around Yen intact.

The pair clocked a high of 82.53 and was last seen trading around 82.42 levels. It remains to be seen if the cross takes out the key resistance level of 82.60 during the day ahead.

AUD/JPY Technical Levels

The pair retreated from 82.60 levels twice last week. Thus, a daily close above 82.60 would open doors for a more sustained rally to 83.35 (Mar low), above which a major hurdle is seen directly around 85.00 (zero figure). On the lower side, failure to hold above 82.00 could yield a retreat to 80.62 (50-DMA), under which the psychological level of 80.00 could come into play.