#AUDJPY @ 93.3860 has climbed to near 93.40 as the RBA is expected to raise interest rates further. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER 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_level1)]

• AUD/JPY has climbed to near 93.40 as the RBA is expected to raise interest rates further.
• Higher interest rates from the RBA are impacting the economic prospects of Australia.
• The BoJ is consistently making efforts for pushing wages and demand higher through sheer monetary stimulus.

The pair currently trades last at 93.3860.

The previous day high was 93.52 while the previous day low was 92.78. The daily 38.2% Fib levels comes at 93.24, expected to provide support. Similarly, the daily 61.8% fib level is at 93.07, expected to provide support.

The AUD/JPY pair showed a V-shape recovery from the critical support of 93.00 in the London session. The risk barometer has stretched its V-shape recovery to near 93.40 as the street is hoping that the Reserve Bank of Australia (RBA) is going to raise interest rates further.

Australian inflation has shown persistence as the monthly Consumer Price Index (CPI) indicator has jumped to 6.8% from the former release of 6.4%, which is sufficient to support more interest rate hikes from the RBA. In June’s monetary policy meeting, RBA Governor Philip Lowe stated that more interest rate hikes are appropriate to bring down stubborn inflation. The commentary came after RBA Lowe announced a 25 basis point rate hike surprisingly to 4.10%

A poll from Reuters showed that the RBA would raise its Official Cash Rate (OCR) further by 25 basis points (bps) to 4.35%.

Meanwhile, higher interest rates from the RBA are impacting the economic prospects of Australia. Australian GDP has dropped in the first quarter of CY2023 and their surplus Trade Balance has slipped due to weak global demand.

In the Asian region, a few Chinese biggest banks lowered rates on a range of deposit products, responding to the government’s call for help in boosting growth in the world’s second-largest economy. This might accelerate recovery in the Chinese economy and support its vulnerable real estate. It is worth noting that Australia is the leading trading partner of China and monetary stimulus in China would support the Australian Dollar.

In Japan, recovery could be higher led by the Bank of Japan’s (BoJ) efforts of pushing wages and demand higher through sheer monetary stimulus. Economists at Societe Generale cited the most resilient major economy maybe Japan, and that should provide some support for the yen as the market waits for next week’s BoJ meeting.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 93.34 at the time of writing. Pair opened at 93.2 and is trading with a change of 0.15 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 91.57, 50 SMA 90.45, 100 SMA @ 90.55 and 200 SMA @ 91.8.

The previous day high was 93.52 while the previous day low was 92.78. The daily 38.2% Fib levels comes at 93.24, expected to provide support. Similarly, the daily 61.8% fib level is at 93.07, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 92.81, 92.42, 92.07
• Pivot resistance is noted at 93.55, 93.91, 94.3

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group