FxWirePro: AUD/JPY Daily Outlook

Chart - Courtesy Trading View 

AUD/JPY was trading 0.44% lower on the day at 90.77 at around 10:40 GMT, edges higher from session lows at 90.22.

Reports that Japanese government is likely to appoint Kazuo Ueda as the next Bank of Japan (BoJ) governor buoyed the yen across the board.

Analysts expect the new governor could bring an end to the BOJ's ultra-easy monetary policy sooner than previously thought.

Reports also said that government will also nominate Ryozo Himino, former head of Japan's banking watchdog, and BOJ executive Shinichi Uchida as deputy governors.

Markets had been expecting Amamiya to come in and pick-up where Kuroda left off. But Yen surges as Kazuo Ueda set to be nominated BOJ governor.

The pair quickly reversed losses and edged higher on dovish remarks by Ueda who said that the current policy is appropriate and added they need to continue the easy policy.

Technical bias for the pair is bearish. Price action finds major resistance at 55-EMA and cloud top. Upside only on decisive break above.

Price action is below 200H MA. Momentum is bearish, Stochs and RSI are sharply lower. MACD confirms bearish crossover on signal line. 

Major Support Levels: 

S1: 90.54 (55-week EMA)

S2: 88.89 (Lower BB)

Major Resistance Levels: 

R1: 91.04 (21-EMA)

R2: 91.31 (55-EMA)

Summary: AUD/JPY is showing signs of downside resumption. Scope for dip till major trendline support at 89.