#AUDJPY @ 87.3590 mirrors risk mode amid global financial instability. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• AUD/JPY mirrors risk mode amid global financial instability.
• Australia’s March Flash PMI results indicate a sustained economic slowdown.
• Inflation uncertainty persists in Japan despite easing price indicators.

The pair currently trades last at 87.3590.

The previous day high was 88.38 while the previous day low was 86.93. The daily 38.2% Fib levels comes at 87.48, expected to provide resistance. Similarly, the daily 61.8% fib level is at 87.82, expected to provide resistance.

The risk-sensitive AUD/JPY currency pair mirrors the current risk mode, as the Australian dollar weakens following the release of the S&P Global Preliminary Purchasing Manager Index (PMI) for March. The composite PMI dropped to 48.1 from the previous 50.6, while the manufacturing PMI fell to 48.7 from 50.5, and the service PMI declined to 48.2 from 50.7.

The March Flash PMI results indicate a sustained economic slowdown into 2023. Despite easing price indicators, uncertainty regarding inflation persists due to high service industry input prices and labor costs. As the Reserve Bank of Australia (RBA) prepares for its April meeting, strong employment figures and ongoing inflation uncertainty may result in a closely contested decision on whether to pause the tightening cycle amid global financial instability.

Japan’s Consumer Price Index (CPI) for February showed a YoY rate of 3.3%, compared to the expected 4.1% and the previous 4.1%. Excluding food and energy, the index came in at 3.5%, against the expected 3.4% and the previous 3.2%. The slowdown in headline CPI can be attributed to government subsidies for gas and electricity bills aimed at mitigating rising living costs. However, many economists argue that broader price pressures within the economy remain strong, potentially leading the Bank of Japan (BoJ) to phase out or abandon its yield curve control policy soon. Although the Core figure still looks sticky.

In addition to Japan’s CPI, the country’s flash PMI data will be released on Friday. The AUD/JPY pair’s movement is likely to be influenced by risk sentiment, as uncertainty arises from the potential impact of the banking crisis on US credit conditions in the coming months. This uncertainty could subsequently affect economic activity and inflation. Federal Reserve Chair Jerome Powell acknowledged this uncertainty on Wednesday, stating, “We simply don’t know.”

Technical Levels: Supports and Resistances

AUDJPY currently trading at 87.44 at the time of writing. Pair opened at 87.44 and is trading with a change of 0.0 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 89.9, 50 SMA 90.79, 100 SMA @ 91.36 and 200 SMA @ 92.8.

The previous day high was 88.38 while the previous day low was 86.93. The daily 38.2% Fib levels comes at 87.48, expected to provide resistance. Similarly, the daily 61.8% fib level is at 87.82, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 86.79, 86.13, 85.34
• Pivot resistance is noted at 88.24, 89.03, 89.69

[/s2If]
Join Our Telegram Group