FxWirePro: AUD/JPY hovers around 38.2% Fib, RBA policy meeting in focus for impetus

AUD/JPY chart - Trading View 

Spot Analysis:

AUD/JPY was trading 0.28% higher on the day at 80.91 at around 10:20 GMT

Previous Week's High/ Low: 81.31/ 79.90

Previous Session's High/ Low: 80.80/ 79.90

Fundamental Overview:

In the week ahead, the Reserve Bank of Australia meets on Tuesday and is expected to keep policy steady. 

Renewed concerns that a collapse at Evergrande could hurt an already fragile Chinese economic recovery and weigh on global growth, is likely to keep upside limited.

Technical Analysis:

- AUD/JPY is extending bounce off 21-EMA support

- Price action has broken above 55-EMA, scope for further upside

- The pair trades above 200H MA and GMMA indicator shows bullish shift on the intraday charts

- Volatility is high and momentum is bullish, raising scope for further gains

Major Support and Resistance Levels:

Support - 80.40 (21-EMA), Resistance - 81.33 (110-EMA)

Summary: AUD/JPY has bounced off 21-EMA support, raising scope for further upside. Technicals show bullish bias. Decisive breakout above daily cloud will propel the pair higher.