AUD/JPY: Off session highs, focus on CNH

• AUD/JPY has backed off from session highs, possibly due to CNH's pullback from daily highs.
• A close above the falling trendline would validate Friday's bullish outside-day and would open the doors to further gains.

Currently, the AUD/JPY is trading at 81.56, having clocked a session high of 81.74.

The retreat from the session highs is likely associated with offshore yuan's (CNH) drop from the high of 6.7810 per USD to 6.8031 per USD.

Further, the Japanese yen is pushing higher against the greenback, possibly due to the falling spread between the 10-year Us treasury yield and the 10-year Japanese government bond yield.

However, the resistance of the trendline sloping downwards from the July 19 high and July 31 high will likely be scaled as Australian political uncertainty is behind us and the offshore yuan is seen gaining strength, as indicated by the head-and-shoulders breakdown on the USD/CNH chart.

A daily close above the falling trendline would add credence to bullish continuation signaled by Friday's bullish outside-day candle and would allow a sustained rally to 82.36 (100-day moving average)

AUD/JPY Technical Levels

Resistance: 81.67 (trendline hurdle), 81.89 (50-day moving average), 82.36 (100-day moving average)

Support: 81.22 (5-day moving average), 81.00 (psychological support), 80.89 (10-day moving average)

                                      Start Trading with Free $30    : CLAIM NOW $30 

     VERIFY YOUR ACCOUNT AND GET YOUR $30 INSTANTLY ,MAKE MONEY WITHDRAW !!

               IT IS POSSIBLE TO SHIFT FROM $30  TO  $1,000,000  TRY  TODAY

IF  YOU  FACE  ANY  PROBLEM  TO  GET  THIS  OFFER  PLEASE CONTACT US FOR

               SUPPORT ,  CLICK  SMS  BAR  ABOVE  THEN  TALK  TO  US