FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (EURUSD and AUDUSD) for the day)
FxWirePro: AUD/JPY Daily Outlook
Chart - Courtesy Trading View
AUD/JPY was trading 1.07% higher on the day at 93.57 at around 10:55 GMT.
The pair has erased most of the previous session's losses and retraced above 110-EMA.
Japan's finance minister Shunichi Suzuki said on Monday that the government stands ready to intervene in currency markets to prevent deeper losses in the domestic currency.
This, along with the prevalent cautious market mood, might continue to offer some support to the safe-haven JPY.
That said, monetary policy divergence between the Bank of Japan and other major central banks should keep a lid on the yen.
Focus now on the key Reserve Bank of Australia monetary policy decision scheduled on Tuesday.
In the RBA Sep minutes, the Board judged that it may be appropriate 'at some point' to scale back to 25bps hikes. Analysts at TD Securities think it is too soon for that.
On the other side, dovish BoJ continues to undermine the JPY and supports prospects for further gains.
Support levels - 92.14 (Lower BB), 90.38 (200-DMA)
Resistance levels - 93.86 (200H MA), 94.58 (55-EMA)
Summary: AUD/JPY pivotal at 200H MA, watch out for decisive break above for further gains.