AUD/JPY has gained close to 75 pips so far today
Two currencies at opposite ends of the major bloc performance in today's trading currently. The AUD has gained on the back of positive retail sales data as well as a less dovish (that's the way I would interpret it) RBA.
Meanwhile, the JPY is losing a bit of ground despite the equities market in Asia mostly seeing red. Treasury yields are up on the day though, and that's likely providing some reprieve for USD/JPY that's keeping the JPY pinned back. BOJ governor Kuroda also had some comments earlier but that's not much of a tide swinger.
Looking at the cross (daily chart), AUD/JPY managed to break through the 200D MA today with relative ease - in which it failed to break yesterday before moving back down.
But the move to the topside is currently stalled by the 38.2 retracement level at 86.16, when you measure up the downwards swing from 21 October high to November lows.
For now, that's helping to keep a lid on the pair. There's not much impetus at the moment to push the AUD higher on the day on the data front, so we're going to have to wait and see if European and American traders are going to provide the push needed for the pair to break through the 86.16 level.
If all else fails, tomorrow's Australia Q3 GDP will be the make or break to see if the AUD can continue its push higher on the week.
