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AUD/JPY hits fresh daily high, breaks above 98 handle

FXStreet (Mumbai) - The Australian dollar jumped against the Japanese counterpart, extending gains for the second straight session as the likelihood of Chinese central bank’s liquidity enhancing measures boosted the commodity currency.

Currently, the AUD/JPY pair hit fresh daily highs at 98.11 levels, up 0.34% on the day, after posted day’s low 97.67 earlier in the day. The cross in AUD/JPY remains supported as the AUD/USD gains on news that the People’s Bank of China will loosen its definition of loan-to-deposit ratios starting next year, thereby encouraging the banks to lend. The AUD/USD pair trades at intraday high levels of 0.8151, up 0.30% on the day, pushing the AUD/JPY cross higher.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 98.48 (Dec 12 High) and above which it could extend gains to 98.80 (Dec 11 High) levels. To the downside, immediate support might be located at 98 levels and below that at 97.73 (5-DMA) levels.

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