AUD/JPY rallies as Aussie takes-off onto the 0.76 handle

AUD/JPY, the markets risk barometer, has spiked in Tokyo as markets follow suit of the US session, with an improved risk appetite, but also, the Aussie has rallied from below the 0.76 handle ahead of the key retail sales in Australia event for Asia today. 

AUD/JPY is riding the strength of the Aussie as markets take advantage of the carry given the RBA have cut interest rates, despite the economy doing pretty well, speculating that the RBA are done for the time being while otherwise, the mood around the Fed has turned and rate hike expectations for September have been taken off the table due to the recent GDP data and durable good's miss. The main event lies with the nonfarm payrolls on Friday, but not after a wobble from the BoE in tonight's London shift.

How volatile has AUD/JPY been?

On the hourly AUD/JPY chart, ATR (14) is presently at 16 pips, while 2-Standard Deviation Volatility Bandwidth is shrinking and currently 31 pips. On a daily chart, 2-Standard Deviation Volatility Bandwidth is shrinking at 598 pips. Over the past four weeks, 16 pips has been the average movement for the current session. Following the four-week period average, today's most volatile hour is between 1:00-2:00 GMT which has an average movement of 53 pips.

What price levels and patterns have to be considered?

With spot trading at 77.11, we can see next resistance ahead at 77.23 (Daily High), 77.33 (Daily Classic R1), 77.38 (Hourly 100 SMA), 77.90 (Daily Classic R2) and 78.17 (Hourly 200 SMA).Support below can be found at 77.10 (Yesterday's High), 76.92 (Daily Classic PP), 76.83 (Daily Open), 76.82 (Weekly Classic S1) and 76.82 (Hourly 20 EMA). Looking to candlestick patterns, we can see a Piercing Line formation on the 4-hour chart .