AUD/JPY retakes rising trend line on Yen weakness

The sell-off in the Japanese Yen on account of the rising Treasury yields pushed the AUD/JPY cross back above the rising trend line (drawn from Dec 29 low and Feb 9 low).

Trades at 4-day high

At the time of writing, the cross was trading at a four-day high of 86.64 levels. The 10-year treasury yield rose to a fresh 12-week high of 2.618% and that is keeping the Yen under pressure in Asia.

In the meantime, a technical correction in the AUD/USD is underway. Consequently, the AUD/JPY pair extended Thursday’s sharp recovery from the low of 85.85 to a high of 86.64 levels.

AUD/JPY Technical Levels

A break above 86.71 (Mar 3 high) would open the doors to 86.91 (Mar 7 high) and 87.10 (descending trend line hurdle). On the other hand, a break below 86.35 (5-DMA) could yield a drop to 86.17 (50-DMA) and 86.00 (zero figure).