FXStreet (Guatemala) – Today for the cross, it is all about the BoJ.
The market is fully anticipating a change from the Central Bank to their policy or the JPY80trn pace of asset purchases, however one cannot rule out a surprise at this stage following the mixed signals of late and given the state of the Japanese economy, Yen strength, the value of oil and a worsening inflation outlook, as such much needed adjustments could be voted for.
Meanwhile, the cross has been supported on a better outlook in Australia after the surprises to the upside in the CPI in a stark contrast to competing nations. The cross rallied from support of the 200 sma on the 1hr charts at the mid point of the 81 handle and has been a steady climb to recent highs of 84.80.
AUD/JPY levels
Technically, the 20 sma on the 1hr stick offers potential support at 83.80 while a correction below the 83 handle would need to break 27th Jan lows of 83.00 and S1 that is guarding S2 at 82.84 (20 dma) and S1 at 82.64.
On a continuation of the uptrend, 85.40 comes into play as a target with the price bid through the 20 dma at 82.80. R1 is 84.58, R2 is 84.79 and R3 is 85.00. Daily RSI (14) is in neutral and offers plenty of upside potential in a continuation of the recovery of the 88 downtrend at the start of 2016.
(Market News Provided by FXstreet)