AUD/JPY supported with bearish Yen prospects

FXStreet (Guatemala) - AUD/JPY is trading at 98.97, up 0.02% on the day, having posted a daily high at 99.18 and low at 98.78.

AUD/JPY continues to oscillate around the 99 handle and has been recently supported on the Australian homes loans report overnight that showed the value of loans rising. The Yen remains on the back-foot also and pullbacks are equating to opportunities to buy on dips only. The fundamentals are stacking up and markets are expecting a rate hike from the Fed in 2015 while the BoJ is effectively keen on a weaker Yen. The Aussie will usually benefit from a risk-on market place and extra liquidity around the investment sector. If we see improvements in the commodity space as well, and with improvements coming in from Chinas economy, then the pair is sure to be supported.

AUD/JPY noteworthy levels

With spot trading at 98.97being the hourly 20 EMA, we can see next resistance ahead at 99.02 (Daily Open), 99.18 (Daily High), 99.42 and 99.80. Support below can be found at 98.92 (Daily Classic PP), 98.91 (Weekly Classic PP), 98.86 and (Hourly 100 SMA).