FxWirePro: AUD/JPY extends previous week's gains, edges above 110W EMA

AUD/JPY chart - Trading View 

AUD/JPY was trading 0.56% higher on the day at 75.82 at around 08:15 GMT.

Yen under pressure after Bank of Japan (BOJ) Governor Haruhiko Kuroda pessimistic comments about the outlook on Japan’s economy and inflation.

Speaking in an online conference this Monday, Kuroda said that Japanese economy in severe condition and pace of the recovery remains moderate.

He noted downside risks to the economy, inflation and added that the central bank will not hesitate to take additional easing steps.

Kuroda's comments followed the central bank’s estimate showed that Japan’s output gap slump by 4.83% in the second quarter of the current fiscal year.

AUD/JPY extends the previous week's gains (closed 1.71% higher in the previous week), outlook bullish.

Price action finds stiff resistance at 50-DMA at 76.20. Break above will fuel further gains. Next bull target lies at 61.8% Fib at 78.67.

Support levels - 74.73 (110-EMA), 72.85 (200-DMA)

Resistance levels - 76.20 (50-DMA), 78.67 (61.8% Fib)