AUD/JPY regains bid tone, peeps above 200-MA ahead of Aussie jobs data

AUD/JPY recovered from the session low of 82.93 and was last seen trading above the 200-DMA of 83.16.

Japanese Yen found takers after the report hit the wires that the special counsel is investigating Trump for possible obstruction of justice. However, the early Yen strength was short lived. Thus, the cross quickly recovered from the low of 82.93 to 83.20 levels.

Focus on Aussie labor data

The jobs data due at 01:30 GMT is expected to show the unemployment rate remained steady at a seasonally adjusted 5.7% in May. About 10,000 jobs are expected to have been created in May. Traders are advised to keep an eye on the full time job number as it gives a clearer picture of the labor market strength.  A strong data could help AUD/JPY cross extend gains above 200-DMA.

On the other hand, job losses could force markets to begin pricing-in a RBA rate cut. That would push the AUD/JPY back below 200-DMA and towards the session low of 82.93.

AUD/JPY Technical Levels

A break above 83.39 (June 9 high) would expose the overnight high of 83.67 and the key psychological level of 84.00. On the downside, failure to hold above 83.16 (200-DMA) could yield a re-test of 82.82 (10-DMA) and 82.59 (June 12 low).