#AUDJPY @ 94.9400 -imp levels: picks up bids to refresh weekly top.

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• AUD/JPY picks up bids to refresh weekly top.
• China announced more stimulus to battle recession woes, Fitch doubts Beijing’s recovery.
• Yields retreat from two-month high amid hopes that policymakers may step back from hawkish mode at Jackson Hole Symposium.

The pair currently trades last at 94.9400.

The previous day high was 94.89 while the previous day low was 94.2. The daily 38.2% Fib levels comes at 94.46, expected to provide support. Similarly, the daily 61.8% fib level is at 94.63, expected to provide support.

AUD/JPY remains on the front foot at the highest levels since August 15 as bulls cheer China’s stimulus and mildly positive market sentiment during Thursday’s Asian session.

China’s Cabinet, State Council, outlined a 19-point policy package on Wednesday while announcing economic stimulus measures worth CNY1 trillion ($146 billion) to stimulate growth affected by covid lockdowns and property market crisis, per Bloomberg. Even so, global rating giant Fitch mentioned that the Chinese land market has yet to recover in a sustainable manner.

Previously, Reuters came out with the news suggesting that various Chinese state media agencies are coming to the rescue of the local currency, the yuan, after the recent depreciation, justifying that the country’s strong exports should offset a stronger dollar and hawkish Fed rate hikes.

Elsewhere, the US 10-year Treasury yields rose the most in a week the previous day while refreshing a two-month high to around 3.10%. However, mixed concerns seem to have probed the US bond sellers of late.

That said, global traders have recently turned positive, even if mildly, amid hopes that the global central bankers may refrain from hawkish signals while speaking at the Jackson Hole Symposium. The expectations could also be witnessed in the latest comments suggesting recession woes by the policymakers from the US Federal Reserve (Fed), European Central Bank (ECB) and the Bank of Japan (BOJ). Recently, Bank of Japan (BOJ) board member Nakamura stated that BOJ must patiently maintain powerful monetary easing.

Amid these plays, the Wall Street benchmarks printed mild gains, which in turn helped S&P 500 Futures to remain mildly bid at around 4,150 at the latest.

Looking forward, a light calendar may restrict AUD/JPY moves but the pair’s risk barometer status may help it stay on the bull’s radar.

A clear upside break of the one-month-old descending trend line, around 94.70 by the press time, directs AUD/JPY bulls towards July’s peak near 95.70. However, the monthly high of 95.15 may probe the intraday buyers.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 94.86 at the time of writing. Pair opened at 94.73 and is trading with a change of 0.14% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 93.81, 50 SMA 93.81, 100 SMA @ 93.11 and 200 SMA @ 88.48.

The previous day high was 94.89 while the previous day low was 94.2. The daily 38.2% Fib levels comes at 94.46, expected to provide support. Similarly, the daily 61.8% fib level is at 94.63, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 94.32, 93.91, 93.62
• Pivot resistance is noted at 95.01, 95.3, 95.71

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