Chart - Courtesy Trading View
AUD/JPY was trading 0.55% lower on the day at 143.16 at around 12:00 GMT, snapping three-days of upside.
RBA minutes from the June monetary policy showed that the Australian economy doesn’t see any signs of recession on the current horizon.
Minutes showed the household spending is resilient despite depreciated paychecks due to higher price pressures.
According to the minutes, the jobless rate is going to remain untouched while fixing the inflation mess.
On the other side, negative market sentiment prevails as investors remain uncertain over Federal Reserve (Fed) chair Jerome Powell’s testimony.
Powell is expected to suggest bringing in more restrictive measures to contain the soaring inflation and on injecting liquidity into the economy.
AUD/JPY is currently holding support at 21-EMA. Retrace below will see dip till 55-EMA. Bounce off 21-EMA will see upside resumption.
