AUD/JPY clocks 2-1/2 week high
- Yen under pressure on falling political uncertainty in the US.
- AUD relatively resilient.
The AUD/JPY pair rose to 85.75 in Asia; the highest level since Nov.17 as Yen dropped on fading political uncertainty in the US.
The ABC news has reported on Friday that Flynn would testify that Trump directed him during the campaign to make contact with Russian officials. That weighed over the USD and stocks. However, over the weekend, the network corrected its report saying former national security adviser Michael Flynn would testify against President Trump.
Also, the US tax reform approval pushed the Yen lower. Meanwhile, the Aussie dollar has remained relatively resilient, possibly due to upbeat Melbourne Institute Inflation reading. Thus, AUD/JPY jumped to 2-1/2 week high.
AUD/JPY Technical Levels
As of writing, the pair was trading at 85.65 levels. A move above 85.89 (200-day MA) would open up upside towards 86.56 (Sep. 6 low) and 86.69 (Oct. 31 low). On the other hand, a break below 85.40 (4-hour 100-MA) would expose 85.00 (psychological figure) and 84.86 (4-hour 50-MA).