FxWirePro: AUD/JPY snaps three-day bearish streak, bounces off major trendline support

Chart - Courtesy Trading View 

AUD/JPY was trading 0.73% higher on the day at 87.42 at around 11:40 GMT, extends recovery from multi-week lows hit on Friday's trade.

AUD/JPY gains strong positive traction on Monday and builds on to the previous session's recovery.

A generally positive tone around the equity markets undermines the safe-haven Japanese Yen (JPY). 

News that First Citizens Bank & Trust Company will buy all of Silicon Valley Bank's deposits and loans from the Federal Deposit Insurance Corporation (FDIC) calms markets about the contagion risk. 

Also, reports that US authorities were in the early stage of deliberation about expanding emergency lending facilities boost market sentiment.

The risk-on impulse, the widening of the US-Japan rate differential weighs on the JPY and lends support.

Support levels - 86.80 (Trendline support), 86.10 (Lower BB)

Resistance levels - 87.53 (5-DMA), 88.10 (200H MA)

Summary: The pair has snapped a three-day bearish streak and has edged higher, holds support at major trendline at 86.80.

Upside finds immediate resistance at 5-DMA at 87.54. Technical bias for the pair is still bearish. Decisive break above 200H MA will change near-term bias.