AUD/JPY is just short of a 5-day high, eye RBA’s Debelle speech

AUD/JPY is just a few pips short of fresh 5-day highs above 84.91 (previous day’s high). The immediate focus is on the speech from RBA’s Assistant Governor Debelle, scheduled at 8:30 GMT.

Nears key trend line hurdle

The trend line sloping downwards from Feb 16 high and Mar 16 high is seen offering resistance around 85.00 levels. The cross remains on the front foot this Tuesday morning in Asia, largely due to the weakness in the Japanese Yen. The 10-year Australian government bond yield is down 1.3 basis points, suggesting the markets do not expect Debelle to drop any hawkish events.

The marginal strength seen in Asia offers little clues regarding the broader market sentiment. Moreover, the overbought RSI conditions on the 1-hour and 4-hour chart might make it hard for the JPY bears to push the cross beyond the critical trend line hurdle.

AUD/JPY Technical Levels

An hourly close above 85.00 (zero figure + trend line hurdle) would open up upside towards 85.24 (Feb 7 low) and 85.77 (Mar 31 high). On the downside, breach of support at 84.52 (May 16 high) could yield a pull back to 84.28 (10-DMA) and 84.00 (zero levels).