The cross in AUD/JPY is seen easing slightly from four-day tops reached just shy of 87 handle, as the bulls enter a phase of consolidation after the latest move higher.
AUD/JPY: Bulls guard 85.70 levels.
The cross rallied hard in Asia, after it received double booster shot from fresh Yen selling across the board and strengthening AUD/USD on in-line with expectations Chinese inflation figures. Chinese June inflation y/y in line with exp, monthly reading a slight miss
The Japanese Yen extended weakness for the second straight session, following comments from the BOJ Governor Haruhiko Kuroda, who reiterated that the central bank remains ready to adjust policy as needed following its bond buying last week to cap rising yields.
More so, the risk barometer also benefit from risk-on rally in the equities , fueled by the recovery in oil prices, after having booked almost 3% loss on Friday. The spot now looks forward to the sentiment on the European open for fresh impetus amid a data-light trading session today.
Higher side: 87 (Intermittent tops), 87.50 (psychological levels), 88.22 (multi-month tops)
Lower side: 85.73 (Jul 6 & 7 low), 85.51 (20-DMA), 84.81 (200-DMA)