AUD/JPY struggling to hold above 78.00

AUD/JPY is working hard to avoid a slide below 78.00 handle as a better-than-expected Aussie trade deficit number is not helping the AUD.

Trades below 61.8% Fibo

Offered tone around AUD had gathered pace in early Asia, pushing the AUD/JPY cross briefly to a high of 78.17 before Yen staged a comeback. Consequently, the cross fell back below 78.09 (61.8% of Brexit day high-low).

Australia trade deficit number for July came-in at 2.41 billion, which was lower than the expected number of 2.7bn. However, the slightly upbeat data has failed to lift the pair. Moreover, Yen remains on a strong footing after the Japanese GDP released earlier today defied doom–mongers.

AUD/JPY Technical Levels

A break above 78.09 (61.8% of Brexit day high-low) would open doors for 78.65 (100-DMA) above which the cross could target 79.00 levels. On the other hand, a break below 78.00 levels would expose support at 77.57 (previous day’s low) and 77.00 levels.