AUD/JPY is down 0.6% in trading today
The pair ran into key daily resistance from its December 2019 high around 76.55 yesterday and ultimately, that proved to be the level which is limiting gains once again.
As mentioned then, the pair is also a key risk barometer and the retreat in US equities is getting more validation by the failure of AUD/JPY to take out the key level above.
And with the risk mood looking more defensive in the new day, we are seeing the pair fall further - not to mention the fact that the yen is seeing decent strength as Treasury yields are falling towards its lower bound of the April trading range.
The retreat at the key daily resistance above now puts the focus back to near-term levels:
Buyers have already relinquished near-term control on a break below the 100-hour MA (red line) and price action is now testing the 200-hour MA (blue line) @ 75.36 instead.
Keep above that and the near-term bias stays more neutral but break below that and sellers will start to gather more momentum to start chasing a further drop towards 75.00 and the previous swing region consolidation around 74.70-80.
