AUD/JPY remained dominated by yen weakness today, moving into the mid-110s. A review of the 19th's price action and an analysis of the order book as of 7:00 today identified heavy buy orders around ¥110 and ¥108, along with heavy sell orders around ¥111.
AUD/JPY moved lower in yen terms yesterday, and after opening with a gap this week, continued to trade with the yen weakening. After the date changed, the pair moved sideways and closed with the yen weaker on a closing-price basis. In Japan, the tertiary industry activity index came in negative but exceeded market expectations, prompting only a limited reaction in AUD/JPY. Remarks by Assistant Governor Kent of the Reserve Bank of Australia have also been reported.
In today's analysis, the order book shows particularly heavy buy orders around ¥110, which is attracting attention as an area near the support line. There are also heavy buy orders around ¥108, apparently reflecting attention to round numbers. Meanwhile, heavy sell orders around ¥111 may be acting as a resistance line. Sell orders are also heavy around the mid-¥108s, indicating that support and resistance levels are attracting market attention.
The correlation analysis for the past 24 hours showed that AUD/JPY had strong positive correlations with USD/JPY, EUR/JPY, GBP/JPY and AUD/USD, while it was inversely correlated with EUR/USD and GBP/USD. In terms of currency strength, the Australian dollar has been the strongest recently and the yen the weakest. The yen has remained stable since late night, while the Australian dollar has stayed in positive territory.