#AUDJPY @ 90.9200 clings to mild gains around three-week high. (Pivot Orderbook analysis)

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• AUD/JPY clings to mild gains around three-week high.
• Australia Building Permits slumped in November, Tokyo markets are off for Coming-of-Age Day.
• China-linked headlines propel risk-on mood amid a sluggish start to the key week.
• Inflation numbers from US, China and Japan appears crucial for clear directions.

The pair currently trades last at 90.9200.

The previous day high was 90.95 while the previous day low was 90.0. The daily 38.2% Fib levels comes at 90.59, expected to provide support. Similarly, the daily 61.8% fib level is at 90.37, expected to provide support.

AUD/JPY seesaws around the highest levels in three weeks as it makes rounds to 91.00 during Monday’s sluggish Asian session.

In doing so, the cross-currency pair takes clues from the markets’ risk-on mood to grind higher. However, a holiday in Japan joins downbeat Aussie data and hawkish concerns from the Bank of Japan (BOJ) to challenge the AUD/JPY bulls.

That said, Australia’s Building Permits dropped to -15.1% YoY in November versus -6.4% prior. Further details suggest that the MoM prints also declined to -9.0% from -5.6% prior (revised from -6.0%), as well as the -1.0% market forecasts.

On the other hand, comments from Japanese Prime Minister (PM) Fumio Kishida also seem to probe the AUD/JPY pair’s upside momentum. “While communicating closely with markets, the BOJ needs to make its policy more flexible with an eye on an eventual normalization of monetary policy,” said Japan PM Kishida.

The market’s risk profile remains firmer as China reopens national borders after a three-year pause. On the same line could be the early signals suggesting China’s heavy shopping during the festive season, as well as comments from People’s Bank of China (PBOC) Official suggesting optimism surrounding China’s growth conditions.

It should be noted that Friday’s downbeat prints of US wage growth, ISM Services PMI and Factory Orders also add strength to the risk-on mood and help the AUD/JPY price to remain firmer.

Amid these plays, Wall Street closed positive while the US 10-year Treasury yields dropped 16 basis points (bps) to 3.56%, the lowest levels in three weeks. It’s worth noting that the S&P 500 Futures print 0.20% intraday gains by the press time.

Looking forward, inflation data from Tokyo, China and the US will be important for the AUD/JPY pair traders to watch for clear directions as upbeat sentiment jostles with hawkish bets on the Bank of Japan (BOJ).

Although the resistance-turned-support line defends AUD/JPY bulls around 89.80, a two-month-old descending trend line near 93.00 challenges the upside momentum.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 90.87 at the time of writing. Pair opened at 90.94 and is trading with a change of -0.08% % .

The pair is trading above its 20 Daily moving average @ 90.32, below its 50 Daily moving average @ 92.2 , below its 100 Daily moving average @ 93.43 and below its 200 Daily moving average @ 93.25

The previous day high was 90.95 while the previous day low was 90.0. The daily 38.2% Fib levels comes at 90.59, expected to provide support. Similarly, the daily 61.8% fib level is at 90.37, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 90.31, 89.68, 89.36
• Pivot resistance is noted at 91.26, 91.58, 92.21

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