AUD/JPY hits fresh session low on disappointment from Japanese stimulus

A tepid recovery from RBA-led dip in the AUD/JPY cross got sold into around 77.35 region and the pair has dropped to hit a fresh session low level.

The cross came under renewed selling pressure after the Japanese government finally announced the much-awaited stimulus package to the tune of 28 trillion Yen. Markets, however, seemed disappointed, triggering a fresh wave of buying interest around the Japanese currency. 

Earlier on Tuesday, RBA decided to cut its benchmark interest-rate by 25 bps points to a record low level of 1.50%. The decision was in-line with market expectations and hence, the pair Australian Dollar seems to shrugged-off the announcement and attempted a recovery. 

The recovery, however, turned out to be short-lived as weaker sentiment around global equity market provided additional support to the safe-haven appeal of the Japanese currency, dragging the AUD/JPY cross to a fresh session low level of 76.70.

Technical levels to watch

On the immediate downside, bulls will make an attempt to defend 76.60-50 support area, below which the pair seems vulnerable to continue drifting lower towards 75.85-80 support area.

On the flip side, any attempts of recovery might now confront immediate hurdle near 77.15 area, which if cleared should assist the pair towards testing 50-day SMA strong resistance near 78.25-30 region.