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FxWirePro: AUD/JPY struggles at 77 handle, extends consolidation above daily cloud, outlook bullish

AUD/JPY chart - Trading View 

AUD/JPY was trading 0.27% lower on the day at 76.65 at around 06:20 GMT, after closing 1.00% higher in the previous session.

The pair is seen struggling at 77.0 handle and is extending consolidation above the daily cloud.

Technical bias remains bullish and break above 77.0 (trendline resistance and psychological level) to see upside resumption.

Downbeat Australian Q3 Construction Output data released earlier today was capping gains in the pair. 

Australia's Constriction Work Done for the third quarter (Q3) dropped to -2.3% QoQ, below -2.0% forecast and -0.7% prior.

That said, market optimism amid Biden transition kicking off and hopes of the coronavirus cure from global pharmaceutical companies to keep downside under check.

Reports of former Fed Chair Janet Yellen being named Biden’s Treasury Secretary add to positive sentiment. 

Yellen has publicly called for increased government stimulus to support the economy through the pandemic and her appointment brings with it, an expectation for a larger spending plan.

AUD/JPY near-term bias has shifted bullish after cloud breakout. Further upside likely. 77 handle is minor resistance, next bull target aligns at 61.8% Fib at 78.67 ahead of 200W MA at 79.31.

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