The AUDJPY currency pair struggles to maintain momentum around the 95.35 level after the rate decision made by the People’s Bank of China (PBoC).

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• AUD/JPY loses traction near 95.35 following the People’s Bank of China (PBoC) rate decision.

The pair currently trades last at 95.3980.

The previous day high was 95.64 while the previous day low was 94.98. The daily 38.2% Fib levels comes at 95.38, expected to provide support. Similarly, the daily 61.8% fib level is at 95.23, expected to provide support.

The AUD/JPY cross edges lower to 95.35 during the Asian session on Wednesday. The cross faces some follow-through selling after Japan’s top currency diplomat Masato Kanda came out with verbal intervention remarks early Wednesday.

Kanda stated that the Japanese authorities will deal appropriately with FX moves and will closely watch them with a high sense of urgency. This, in turn, might drag the AUD/JPY lower and act as a headwind for the cross. Market players await the Bank of Japan (BoJ) interest rate decision on Friday for a clear direction for the pair.

The People’s Bank of China (PBoC) maintained benchmark lending rates steady on Wednesday, as expected by the market. The one-year Loan Prime Rate (LPR), was kept at 3.45%, while the five-year LPR was unchanged at 4.20%. Meanwhile, any signs from the Chinese authorities about the additional stimulus plans to deal with the property crisis might lift the China-proxy Australian dollar (AUD) and limit the downside of the AUD/JPY.

According to the four-hour chart, the path of least resistance for the AUD/JPY is to the upside as the cross holds above the 50- and 100-hour Exponential Moving Averages (EMAs). Meanwhile, the Relative Strength Index (RSI) holds above 50 in the bullish territory, which supports the buyers for now.

Looking at the upside, the immediate resistance level for AUD/JPY emerges near the upper boundary of the Bollinger Band at 95.60. A break above the latter will see a rally to 95.78 (a high of July 21) en route to a high of July 4 at 96.85. The next barrier to watch is a Year-To-Date (YTD) high of 97.62. and finally at 98.00 (a psychological round mark).

On the downside, the cross will meet the key support level near the confluence of the lower limit of the Bollinger Band and the 50-day EMA at 94.90. A breach of the latter will see a drop to 94.60 (the 100-hour EMA), followed by a psychological round figure at 94.00.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 95.4 at the time of writing. Pair opened at 95.42 and is trading with a change of -0.02 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 94.44, 50 SMA 94.34, 100 SMA @ 93.89 and 200 SMA @ 92.05.

The previous day high was 95.64 while the previous day low was 94.98. The daily 38.2% Fib levels comes at 95.38, expected to provide support. Similarly, the daily 61.8% fib level is at 95.23, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 95.05, 94.68, 94.39
• Pivot resistance is noted at 95.72, 96.01, 96.38

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