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JPY: 50-DMA Proves Resilient

AUD

Light risk aversion pushed AUD/JPY lower overnight, but sales were limited by the ascending 50-DMA, intersecting at Y83.56. The rate took its cue from e-minis, which edged lower in Asia-Pac trade. AUD/JPY trades at Y83.61, 17 pips worse off at typing.

  • A break below the aforementioned 50-DMA/Apr 21 low at Y83.56/22 would allow bears to take aim at Apr 9/13 lows of Y83.04/03. On the flip side, gains past Apr 20 high of Y84.72 would prompt bulls to target Y85.45, where the pair registered a multi-year high on Mar 18.
  • Implied vols moved away from weekly highs printed yesterday across most tenors, albeit implied overnight vol rose and last sits at 11.69%.

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