AUD/JPY consolidates the upside below 79, awaits EU referendum

The cross in the AUD/JPY extends its winning streak into a fifth day today, with the EU referendum likely to begin in a couple of hours, which could have major impact on the yen markets.

AUD/JPY eases-off 8-day highs

The AUD/JPY pair now trades +0.55% higher at 78.70, unable to break above 79 marker. The AUD/JPY cross trades with size-able gains, receiving double booster shot from an improved risk sentiment on Bremain hopes, which boosts the higher-yielding currency AUD at the expense of the safe-haven yen.

The cross also found support from higher oil prices, although failed to sustain at higher levels and retreated slightly from eight-day tops in the last hour, as the AUD/USD pair moved-off fresh monthly highs reached at 0.7528 earlier on the day.

Markets now closely await the polls to open for fresh impetus on the risk barometer, AUD/JPY.  The referendum takes place Thursday 6GMT onwards, and the results will be known on Friday.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 78.98/79 (daily high/ round number) and above which it could extend gains to at 79.38 (50-DMA).To the downside immediate support might be located 78.11/77.94 (5 & 10-DMA) below that at 77.14 (Jun 20 low).