The AUDJPY currency pair, trading at a rate of 94.7860, encountered resistance on Friday which resulted in breaking its two-day period of gains.

…
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 meets with some supply on Friday and snaps a two-day winning streak.

The pair currently trades last at 94.7860.

The previous day high was 95.31 while the previous day low was 93.86. The daily 38.2% Fib levels comes at 93.86, expected to provide support. Similarly, the daily 61.8% fib level is at 93.63, expected to provide support.

The AUD/JPY cross comes under some selling pressure during the Asian session on Friday and stalls its recovery from the monthly low, around the 93.25-93.20 region touched earlier this week. Spot prices drop to a fresh daily low, around the 94.55 area in the last hour and for now, seem to have snapped a two-day winning streak.

The Japanese Yen (JPY) continues to draw support from growing speculations that the Bank of Japan (BoJ) could adjust its Yield Curve Control (YCC) policy as soon as this month, which, in turn, exerts some pressure on the AUD/JPY cross. In fact, former BoJ Executive Director Hideo Hayakawa said that widening the band around zero for the 10-year Japanese Government Bond to 1% (from currently 0.5%) is the policy ‘tweak’ being considered.

Furthermore, Japanese media report the BoJ is likely to raise its FY2023 inflation forecast, which has exceeded the 2% goal for more than a year, and should put pressure on the central bank to start unwinding its ultra-loose monetary policy settings. Apart from this, a modest pullback in the US equity futures further benefits the safe-haven JPY and weighs on the risk-sensitive Aussie, contributing to the offered tone surrounding the AUD/JPY cross.

The downside, however, seems limited, at least for now, in the wake of hopes that China will announce more stimulus measures to support the fragile domestic economy. Adding to this, China’s Foreign Minister Wang Yi sounded optimistic and said that China-Australia relations have stabilised, improved and developed. This, in turn, should lend some support to the China-proxy Australian Dollar (AUD) and act as a tailwind for the AUD/JPY cross.

Traders might also prefer to move to the sidelines and wait for the release of the key Chinese macro data, scheduled during the Asian session on Monday. This further makes it prudent to wait for strong follow-through selling before positioning for the resumption of the recent slide from the YTD peak touched in June.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 94.72 at the time of writing. Pair opened at 95.1 and is trading with a change of -0.4 % .

The pair is trading below its 20 Daily moving average @ 95.91, above its 50 Daily moving average @ 93.52 , above its 100 Daily moving average @ 91.53 and above its 200 Daily moving average @ 91.83

The previous day high was 95.31 while the previous day low was 93.86. The daily 38.2% Fib levels comes at 93.86, expected to provide support. Similarly, the daily 61.8% fib level is at 93.63, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 93.44, 92.88, 92.5
• Pivot resistance is noted at 94.38, 94.77, 95.32

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...