FxWirePro: AUD/JPY Daily Outlook

Chart - Courtesy Trading View 

AUD/JPY was trading 0.21% lower on the day at 91.24 at around 05:20 GMT, bias bearish.

The Australian dollar slipped lower across the board despite the Reserve Bank of Australia's (RBA) rate hike at the policy meeting.

The move was widely expected after Australia's inflation rose to a three-decade high last quarter.

The RBA raised the cash rate by a quarter percentage point to 3.60%  in an attempt to control inflation running at three-decade highs.

The central bank said more work needs to be done to tackle inflation and warning of further tightening. 

Australia rate futures are now pricing in RBA cash rate at 4.18%, down from 4.35% a week ago.

Major Support Levels: 

S1: 90.75 (Lower BB)

S2: 90.57 (Cloud top)

Major Resistance Levels: 

R1: 91.60 (55-EMA)

R2: 91.90 (110-EMA)

Summary: AUD/JPY grinds lower for the 4th consecutive session, extends weakness below 55-EMA. Technical indicators suggest further weakness in the pair. 

The pair is on track to test daily cloud support at 90.57. Retrace above 55-EMA negates bearish bias.