FXStreet (Guatemala) – AUD/JPY has been better bid on the wave of bullishness from the Australian camp while elsewhere, such as in today’s inflation data from Japan and the most recent from New Zealand, other nations are playing catch up from back of the queue.
The Australian CPI’s have been highly supportive with the AUD/USD riding the 1hr 100 sma on dips after 21st January’s spike that penetrated the 200 sma on the same time frame. This has led to a mirror pricing action in the cross while the greenback has swallowed up the Yen bulls as we head towards the BoJ later today.
BoJ preview – what to expect in USD/JPY?
“There is a big amount of anticipation on today’s outcome of the Central Bank’s meeting and markets are fastening their seat-belts for this one. “
AUD/JPY has the potential to be a very strong mover while last month’s meeting was a catalyst for 100 pip volatility in the cross and all the BoJ did was tweak the composition of asset purchasing. Today, the price is making a reversal of the 2016 downtrend and is a strong bullish case while changing hands above the 20 dma at 82.63.
AUD/JPY levels
The reversal came from the 2016 downtrend commencing at 87.82 on the daily sticks. Bids came in 79.75 and the price has had few set backs in the ascending channel to current spot, 84.20, and recent highs of 84.80 above it.
The 20 dma is in range should the yen strengthens on a no change and subsequent non dovish rhetoric while the upside target on a surprise move from the BoJ has the 100 dma at 86.14 on the map. Within those wide targets, the pivot sits at 83.45 ahead of S1 at 82.66 (20 dma), S2 at 81.92 and S3 at 81.13. Rs on the other hand is 85.72 through R2 at 84.98 and the psychological 85 handle.
(Market News Provided by FXstreet)