Chart - Courtesy Trading View
Spot Analysis:
AUD/JPY was trading 0.20% lower on the day at 91.55 at around 09:00 GMT.
Previous Week's High/ Low: 93.01/ 91.29
Previous Session's High/ Low: 91.93/ 91.29
Fundamental Overview:
Yen dented after BoJ Governor Nominee Ueda reiterates favor for easy policy, limiting downside in the pair.
Ueda said that the current monetary policy is appropriate to achieve the 2% inflation target confidently.
On the Australia front, recession fears are rising as inflation shows no signs of slowing, bolstering the case of further policy tightening by the Reserve Bank of Australia (RBA).
Major focus will be on this week's Australia’s Q4 Gross Domestic Product (GDP) numbers seen higher at 0.9% vs. the former release of 0.6%.
A higher-than-projected Australia GDP will accelerate troubles for the RBA as higher activity numbers will favor further hikes.
Technical Analysis:
- AUD/JPY has been extending downside after rejection at 200-DMA
- Slight bearish RSI divergence on the daily charts adds downside pressure
- 5-DMA is sharply lower and caps upside in the pair
- Momentum is bearish, Stochs and RSI are biased lower
Major Support and Resistance Levels:
Support - 90.83 (Cloud top), Resistance - 91.84 (5-DMA)
Summary: AUD/JPY trades with a bearish bias. Bears eye daily cloud support at 90.83.
