AUD/JPY: Cautious sentiment probes three-day winning streak above 76.50

• AUD/JPY struggles to keep the bounces off 76.59 after stepping back from the monthly high near 76.75.
• Market sentiment turns sour as Sino-US tension, coronavirus woes gain momentum ahead of the key Jackson Hole Symposium.
• Speech from BOJ’s Suzuki, Aussie Private Capital Expenditure can offer intermediate moves.

AUD/JPY attacks the intraday high near 76.70 as markets in Tokyo open for Thursday’s trading. Even so, the risk barometer remains below the previous day’s high, also the monthly top, marking as 76.76. As a result, bulls are waiting for a strong push to flash the four-day winning streak.

While broad risk-on mood seems to have favored the quote’s previous upside, the latest cautious moves could be traced to the market’s wait for central bankers’ speeches from the Jackson Hole, Wyoming.

Also weighing on the tone could be the latest allegations that the World Health Organization (WHO) sent an only two-person team to China to investigate the coronavirus (COVID-19) out of which none visited the epicenter Wuhan. This adds to the recently strained relations between Beijing and Washington after the dragon’s show of power at the South China Sea’s military drills and the likely US sanctions on companies supporting in that act.

It should be noted that the stabilization in the COVID-19 numbers from Victoria around 150-130 counters the recently increased virus figures from Tokyo, 236 for Wednesday.

Amid all these catalysts, S&P 500 Futures drop 0.14% whereas the US 10-year Treasury yields also ease around 0.68% by the press time.

Moving on, BOJ board member Hitoshi Suzuki’s speech will join Aussie data around 01:30 GMT to offer intermediate moves to the pair ahead of the key speeches from the Jackson Hole. However, markets won’t be ignoring the latest US-China tussle if witnessing any major news, which in turn could weigh on the pair.

Technical analysis

Unless successfully breaking 77.00, bulls are likely to remain cautious. On the contrary, the bears won’t risk entry until the quote stays past-75.60.