AUD/JPY flat lined below 77.00 as Yen bulls take a breather

Three-day losing streak in AUD/JPY appears to have stalled in Asia as Yen bulls are taking a breather, while Aussie is on the back foot ahead of China services PMI data release.

Immediate focus on China data

The broader market sentiment could be influenced by China services PMI figure. Hence, AUD/JPY, which is widely considered as a regional barometer of risk sentiment, could see sharp moves following China data release.

Later in the day, sentiment in the European stocks and US ISM non-manufacturing report could affect the overall demand for the Japanese Yen. The cross was last seen trading around 76.77 levels.

AUD/JPY Technical Levels

A breach of key resistance at 77.00 (50% of Brexit day high low) could yield a move to 77.42 (5-DMA). A violation there would expose resistance range of 78.09 (61.8% of Brexit day high low) – 78.23 (50-DMA). On a larger scheme of things, short unwind could be seen only above 79.51 (Thursday’s high). On the lower side, breakdown of 76.50 (previous day’s low) would open doors for a slide to 75.93 (38.2% of Brexit day high low). Further losses could run into support of 75.05 (July 8 low).