#AUDJPY @ 94.3300 is expected to drop to near 94.00 as the risk-off impulse has escalated. (Pivot Orderbook analysis)

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• AUD/JPY is expected to drop to near 94.00 as the risk-off impulse has escalated.
• Japan’s headline and core CPI are seen higher at 3.1% and 2.0% respectively.
• The BOJ announced a bond-buying program worth $667 million.

The pair currently trades last at 94.3300.

The previous day high was 94.4 while the previous day low was 93.69. The daily 38.2% Fib levels comes at 93.96, expected to provide support. Similarly, the daily 61.8% fib level is at 94.13, expected to provide support.

The AUD/JPY pair has turned sideways in early Tokyo after a vertical downside move from above 95.00 in the New York session. The risk-off impulse heated further after escalating UK political crisis due to the resignation of new UK Prime Minister Liz Truss and soaring returns on US government bonds. In early Tokyo, the asset is oscillating in a narrow range of 94.17-94.38 as investors are awaiting the release of Japan’s National Consumer Price Index (CPI) data.

As per the consensus, the headline CPI will land higher at 3.1% vs. the prior release of 3.0%. While, the core CPI which excludes food and energy prices from the calculation, could accelerate to 2.0% against the former release of 1.6%.

Suspicious commentary from Japan’s top currency diplomat Masato Kanda narrates that the vertical fall in the risk barometer could be an intervention action by the Bank of Japan (BOJ). On Thursday, Japan’s Kanda cited that he “will not comment on whether we are intervening now or have intervened today.” He further cited that, “Excessive and disorderly forex moves have a negative impact on the economy.” the economy is ready to take action in forex markets but will not comment on forex levels.

On Thursday, an emergency bond-buying program worth $667 million announced by the Bank of Japan (BOJ) triggered the risk of further weakness in the Japanese yen. The announcement followed commentary from Japan Prime Minister Fumio Kishida in which he cited the risk of weaker economic prospects due to external demand shocks.

On the Australian front, weaker job market data has impacted the aussie bulls. The Employment Change dropped sharply to 0.9k than the projections of 25k and the prior release of 33.5k. While the Unemployment Rate was released in line with the estimates and the former figure of 3.5%.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 94.2 at the time of writing. Pair opened at 94.01 and is trading with a change of 0.2 % .

The pair is trading above its 20 Daily moving average @ 93.24, below its 50 Daily moving average @ 94.62 , below its 100 Daily moving average @ 94.25 and above its 200 Daily moving average @ 91.0

The previous day high was 94.4 while the previous day low was 93.69. The daily 38.2% Fib levels comes at 93.96, expected to provide support. Similarly, the daily 61.8% fib level is at 94.13, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 93.67, 93.33, 92.96
• Pivot resistance is noted at 94.38, 94.74, 95.08

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