FxWirePro: AUD/JPY snaps six-day bearish streak, Evergrande's hint at coupon payment boosts sentiment

AUD/JPY chart - Trading View 

AUD/JPY was trading 0.68% higher on the day at 79.45 at around 07:00 GMT, outlook remains bearish.

The pair has snapped a six-day bearish streak on improving market sentiment, edges higher to test 5-DMA.

The Bank of Japan (BOJ) kept benchmark interest rate unchanged at -0.10%, in line with wide market expectations.

The central bank revised down economic outlook on virus woes, adding that Japan's economy is likely to recover as impact of pandemic gradually subsides.

Further, PBOC event and positive expectations from Evergrande regarding coupon payment boosted risk-on across markets, supporting the pair higher.

The People's Bank of China left the benchmark cash rate unchanged near 3.85%, and adhered to the heavy cash injection of around 110 billion Chinese yuan.

Earlier in the day, the International Monetary Fund’s (IMF) Chief Economist Gita Gopinath also sounded optimistic over China’s ability to tame the fears emanating from the real-estate firm.

AUD/JPY trades with a bearish technical bias. Recovery may be short-lived. 5-DMA caps upside at 79.49.

Downside has paused shy of 200-week MA. Break below will see downside continuation. 

On the flipside, break above 5-DMA will see gains till 21-EMA at 80.19. Bearish invalidation only above 200-DMA and daily cloud.