#AUDJPY @ 951330 is displaying wild moves around 9500 as RBA hogs the limelight, Pivot Orderbook analysis

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• AUD/JPY is displaying wild moves around 95.00 as RBA hogs the limelight.
• Investors should brace for a fourth consecutive 50 bps rate hike by the RBA.
• The Japanese yen has failed to capitalize on upbeat Retail Trade data.

The pair currently trades last at 95.1330.

The previous day high was 95.38 while the previous day low was 94.77. The daily 38.2% Fib levels comes at 95.14, expected to provide resistance. Similarly, the daily 61.8% fib level is at 95.0, expected to provide support.

The AUD/JPY pair is displaying topsy-turvy moves in a tad wider range of 94.77-95.20 in the Tokyo session. The asset has turned sideways as investors are awaiting the announcement of the monetary policy by the Reserve Bank of Australia (RBA), which is due next week. The cross is displaying sideways auction from the past two trading sessions despite the release of the downbeat Caixin Manufacturing PMI.

The economic data has been trimmed to 49.5 against the consensus of 50.2 and the prior release of 50.4. The Chinese economy is facing the headwinds of a resurgence in Covid-19 cases, and lockdown curbs by the Chinese administration have soared recession fears.

It is worth noting that Australia is a leading trading partner of China and dismal Chinese economic activities could put significant pressure on the aussie dollar.

Next week, the interest rate decision by the RBA may escalate the RBA-Bank of Japan (BOJ) policy divergence further. Considering the soaring price pressures in the Australian economy, RBA Governor Philip Lowe is expected to announce a fourth consecutive rate hike by 50 basis points (bps). An occurrence of the same will escalate the Official Cash Rate (OCR) to 2.35%.

Meanwhile, the Japanese economy is getting worried over costly imports due o broader weakness in the Japanese yen. The private sector is facing the headwinds of costly inputs, which are impacting their margins extremely. This week, the Japanese yen failed to capitalize on the upbeat Retail Trade data. The annual Retail Trade improved dramatically to 2.4% against the expectations of 1.9% and the prior release of 1.5%.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 95.19 at the time of writing. Pair opened at 95.15 and is trading with a change of 0.04 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 94.52, 50 SMA 93.97, 100 SMA @ 93.24 and 200 SMA @ 88.85.

The previous day high was 95.38 while the previous day low was 94.77. The daily 38.2% Fib levels comes at 95.14, expected to provide resistance. Similarly, the daily 61.8% fib level is at 95.0, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 94.82, 94.49, 94.22
• Pivot resistance is noted at 95.43, 95.7, 96.04

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