#AUDJPY @ 92.6500 advances on a risk-on impulse, despite high US inflation. (Pivot Orderbook analysis)

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• AUD/JPY advances on a risk-on impulse, despite high US inflation.
• Wednesday’s BoJ’s Kuroda dovish commentary weighed on the JPY.
• AUD/JPY’s fall capped at the 200-day EMA at 90.75, from which the pair rallied to 92.83, the day’s high.

The pair currently trades last at 92.6500.

The previous day high was 92.42 while the previous day low was 91.29. The daily 38.2% Fib levels comes at 91.99, expected to provide support. Similarly, the daily 61.8% fib level is at 91.72, expected to provide support.

The AUD/JPY extends its gains on Thursdays, following the release of US economic data, which initially weighed on most G8 currencies but the greenback, but a risk-on impulse, propelled risk-perceived currencies, namely the Australian dollar. Therefore, the AUD/JPY is trading at 92.68, above its opening price by 0.56%,

US equity indices are set to finish the session with more than 2% gains each. Earlier, US inflation data was reported, with headline CPI rising by 8.2% YoY, less than estimates. The so-called core CPI, which excludes volatile items, surprisingly jumped more than the 6.5% expected YoY, up by 6.6%. Therefore, market participants had priced in a ¾ percent Federal Reserve rate hike at November’s meeting.

The AUD/JPY dived on the news release but bounced off the lows, under 91.00, and staged a comeback above 92.50, a 150 pip rally.

Aside from this, the lack of Aussie economic data leaves AUD/JPY traders leaning on market sentiment dynamics, which favored the AUD/JPY upside. Earlier in the month, the Reserve Bank of Australia decided to raise rates by 25 bps when markets were expecting a 50 bps increase, perceived by a dovish hike, with market participants flying away from the AUD, seeking return.

On the Japanese front, Bank of Japan Governor Haruhiko Kuroda said that one-side moves in the yen driven by speculation are bad for the economy. Kuroda noted “Yen depreciation may have a good impact on the macroeconomy as a whole, but there are some sectors which are suffering.”

Furthermore, Kuroda commented that the BoJ would continue its monetary easing program to achieve the inflation 2% target in a stable and sustained manner.

All that said, the RBA’s dovish hike, and BoJ’s dovish stance, would likely bolster the AUD/JPY. So traders should expect further AUD appreciation after achieving the bearish-flag pattern target, opening the door for further gains.

Next, the Japanese economic calendar will feature M2 Money Supply, while the Aussie’s docket is empty. AUD/JPY traders should also be aware of China’s calendar, which will feature PPI, CPI, and its Trade Balance.

Also read: AUD/JPY Price Analysis: Retraces from around 92.30s on dampened mood

Technical Levels: Supports and Resistances

AUDJPY currently trading at 92.72 at the time of writing. Pair opened at 92.22 and is trading with a change of 0.54 % .

The pair is trading below its 20 Daily moving average @ 93.91, below its 50 Daily moving average @ 94.66 , below its 100 Daily moving average @ 94.17 and above its 200 Daily moving average @ 90.75

The previous day high was 92.42 while the previous day low was 91.29. The daily 38.2% Fib levels comes at 91.99, expected to provide support. Similarly, the daily 61.8% fib level is at 91.72, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 91.53, 90.85, 90.4
• Pivot resistance is noted at 92.66, 93.11, 93.79

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