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AUD/JPY recovering from key support at 96.40

FXStreet (Moscow) - AUD/JPY touched the key support level of 96.40 early in Asia, but managed to recover towards 96.70 on the back of Aussie growth following better than expected Chinese PMI data

Off from the key support

AUD/JPY lost about 100 pips on Monday as the Australian currency was sold off across the board, while JPY started the corrective recovery against major currencies. The cross started Tuesday on a weaker foot and dipped to the pivotal support level of 96.40 that had already been tested a couple of times since the beginning of September. New buyers that emerged around said level helped the cross to recover towards 96.70 level. Better than expected preliminary PMI data from China (50.5 against forecasted 50.0) also supported Aussie across the board. From the technical point of view, the nearest resistance is seen at 96.80 and then at 97.00. Once this area is broken, the upside may extend towards 97.47 (Monday’s open)

What price levels and patterns have to be considered?

Current price is 96.72, with resistance ahead at 96.77 (Daily High), 96.86 (Daily Classic PP), 97.17 (Daily 20 SMA), 97.20 (Hourly 200 SMA) and 97.21 (Weekly Classic PP).

Next support to the downside can be found at 96.71 (Hourly 20 EMA), 96.57 (Daily Open), 96.56 (Monthly Low), 96.56 (Weekly Low) and 96.50 (Yesterday's Low).

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