#AUDJPY @ 88.7880 has faced resistance after a pullback move to near 89.00. (Pivot Orderbook analysis)

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• AUD/JPY has faced resistance after a pullback move to near 89.00.
• The RBA kept rates steady at 3.60% amid the quick softening of Australia’s inflation this year.
• Higher oil prices are likely to put a burden on Japanese households.

The pair currently trades last at 88.7880.

The previous day high was 90.06 while the previous day low was 88.56. The daily 38.2% Fib levels comes at 89.48, expected to provide resistance. Similarly, the daily 61.8% fib level is at 89.13, expected to provide resistance.

The AUD/JPY pair has retreated after a short-lived pullback to near 89.00 in the early Asian session. The risk barometer is expected to show significant volatility as Reserve Bank of Australia (RBA) Governor Philip Lowe would put some light on the steady interest rate decision taken on Tuesday.

After 10 consecutive interest rate hikes and three consecutive 25 basis points (bps) rate escalations, RBA kept the interest rate policy unchanged on Tuesday. The rationale behind keeping rates steady at 3.60% is the quick softening of Australia’s inflation this year.

Australia’s monthly Consumer Price Index (CPI) indicator has shown a decline in the inflation peak recorded at 8.4% in December to 6.8% in February. This infused confidence in RBA policymakers that the monetary policy is restrictive enough to tame inflation further.

RBA policymakers are anticipating that the Australian economy is slowing ahead, which will cool down the tight labor market. This would result in a lower offering of funds for hiring talent and the stubborn inflation would soften further. The speech from RBA Lowe would provide more clarity about the mindset of the central bank on the maintenance of the status quo and further guidance on interest rates.

On Thursday, the release of the Australian Financial Stability Review report will be released, which will provide a detailed explanation of the financial conditions of the economy and any risk associated with commercial banks due to higher interest rates.

On the Japanese Yen front, higher oil prices are likely to put a burden on households. The Bank of Japan (BoJ) and the administration are constantly working on raising wages to push demand, however, the efforts would go in vain if extra wages would get utilized in offsetting the impact of costly oil.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 88.74 at the time of writing. Pair opened at 89.88 and is trading with a change of -1.27 % .

The pair is trading above its 20 Daily moving average @ 88.7, below its 50 Daily moving average @ 90.6 , below its 100 Daily moving average @ 90.96 and below its 200 Daily moving average @ 92.6

The previous day high was 90.06 while the previous day low was 88.56. The daily 38.2% Fib levels comes at 89.48, expected to provide resistance. Similarly, the daily 61.8% fib level is at 89.13, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 88.93, 87.99, 87.43
• Pivot resistance is noted at 90.44, 91.0, 91.94

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