AUD/JPY - Off 5-month lows, but corrective move stalls at 4H 50-MA

• Sellers ran out of steam at 5-month low of 84.35 yesterday.
• The ensuing technical rally struggles to penetrate 4-hour 50-MA hurdle.

The battered Aussie is on the rise against the Yen today, but the 4-hour 50-MA is proving a tough nut to crack.   

Currently, the AUD/JPY pair is trading at 84.80, having clocked a session high of 84.92. The 4-hour 50-MA stands at 84.86 levels.

The recovery from the 5-month low of 84.35, though encouraging, lacks fundamental support as the prices of Australia's key exports (gold, copper and iron ore) have remained choppy in the last 24 hours.

Iron ore spot markets ended mixed on Tuesday. According to Metal Bulletin, the price for benchmark 62 percent fines rose 0.7 percent to $67.76 a tonne, merely reversing the previous day's 1 percent decline. Meanwhile, gold remains below $1300.

Also, the Treasury yields continue to trade in the sideways manner. So the weak tone in the Yen may not last long. Looking ahead - the technical recovery could gather pace if the 10-year treasury yield rises beyond 2.4 percent and/or the iron ore and gold prices spike.

AUD/JPY Technical Levels

A break above 85.05 (resistance on the 4-hour chart) would expose resistance at 85.32 (Nov. 21 high) and 85.50 (Nov. 15 low). On the other hand, a breakdown of support at 84.72 (5-day MA) could yield a pullback to 84.50 (Nov. 20 low) and 84.35 (5-month low).