#AUDJPY @ 94.2700 -imp levels: is facing barricades around 94.20, upside remains favored ahead of PBOC.

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• AUD/JPY is facing barricades around 94.20, upside remains favored ahead of PBOC.
• The release of job lay-offs by the Australian economy didn’t bring a meaningful impact on aussie bulls.
• Going forward, the S&P PMI data will be of utmost importance.

The pair currently trades last at 94.2700.

The previous day high was 94.55 while the previous day low was 93.83. The daily 38.2% Fib levels comes at 94.28, expected to provide resistance. Similarly, the daily 61.8% fib level is at 94.11, expected to provide support.

The AUD/JPY pair has sensed short-lived exhaustion in the uptrend around 94.20 in the early Tokyo session. The risk barometer has displayed a bullish open-drive movement as the asset is scaling sharply higher right from the first tick in today’s session. The short-lived hurdle is expected to fade sooner as investors are expecting a dovish stance from the People’s Bank of China (PBOC).

It is worth noting that Australia is a leading trading partner to China. Therefore, a loose monetary policy by the PBOC will also strengthen the antipodean. More liquidity flush in the Chinese economy will increase Australian exports and will strengthen the Fiscal balance sheet.

The Aussie bulls defended them last week despite a serious decline in the Australian Employment Change. Instead of expectations of job additions by 25k, the Australian Bureau of Statistics reported a lay-off of 40.9k. However, the Unemployment Rate was trimmed to 3.4% from the expectations and the prior release of 3.5%.

Meanwhile, the yen bulls failed to display a buying action despite an improvement in the National Consumer Price Index (CPI). The economic data landed at 2.6%, outperforming the consensus of 2.2% and the prior release of 2.4%. Sustainability of the inflation rate above 2% may force the Bank of Japan (BOJ) to turn neutral ahead.

Going forward, the S&P Purchase Managers Index (PMI) data by the IHS Markit will be of utmost importance. The Aussie Manufacturing and Services PMI are expected to improve to 57.3 and 54 respectively. While Japanese Manufacturing and Services PMI may accelerate to 51.8 and 50.7 respectively.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 94.26 at the time of writing. Pair opened at 94.16 and is trading with a change of 0.11 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 93.88, 50 SMA 93.72, 100 SMA @ 93.06 and 200 SMA @ 88.31.

The previous day high was 94.55 while the previous day low was 93.83. The daily 38.2% Fib levels comes at 94.28, expected to provide resistance. Similarly, the daily 61.8% fib level is at 94.11, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 93.81, 93.46, 93.09
• Pivot resistance is noted at 94.53, 94.9, 95.25

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