Filed Under:
Forex pairs in this Article » USD/JPY
FXStreet (Moscow) - AUD/JPY is on the back foot today as the cross started the Asian session at 90.75 and moved close to an important support of 90.00, where the bearish momentum faded.

AUD/JPY bulls need a pause before new attack

AUD/JPY was a big mover yesterday as the cross smashed a couple of resistance levels and climbed to the yesterday’s high of 90.85. This rally is the work of RBA and its unexpected shift to neutral monetary policy stance. As we do not have any meaningful publications either from Australia or Japan, the cross movements will be shaped by technical and speculative factors. The manager of the world’s biggest bond fund at Pimco Mr. Gross expressed his pessimistic views about the China slow down influence on the global financial markets, which helped the Yen to gain ground against risky assets such as AUD. Though the Aussie is on the back foot, we believe that the cross has a good potential to resume growth as the RBA theme is not an old stale story yet. Keep an eye at 90.00 as this level is protected by new demand and stop orders. Once it is broken, the downside may accelerate to Monday’s high at 89.83 and then to 89.50. The resistance comes at 90.70-80.

What are today’s key AUD/JPY levels?

Today's central pivot point can be found at 90.00, with support below at 89.07, 87.31 and 86.38, with resistance above at 91.76, 92.69 and 94.45. Hourly Moving Averages are mixed, with the 200SMA at 89.84 and the daily 20EMA at 90.95. Hourly RSI is neutral at 52.
comments powered by Disqus