FxWirePro: AUD/JPY spikes over 0.80%, dovish BOJ’s summary of opinions dents yen

Chart - Courtesy Trading View 

AUD/JPY was trading 0.86% higher on the day at 90.55 at around 07:40 GMT, extends gains for the fourth straight session.

The pair has snapped a 2-week bearish streak and is on track to test 21-EMA at 90.98.

Bank of Japan policy makers have advocated dovish policy continuation through the summary of opinions of the previous week’s meeting.

BOJ’s summary of opinions indicated that apanese economy is showing signs of wage rises, a positive economic cycle but it is appropriate to maintain an easy policy.

On the other side, Aussie finds bids after China revoked quarantine rules imposed on inbound travelers to meet the tolerance Covid policy. 

Following the move, China’s National Bureau of Statistics (NBS) has revised the 2023 Gross Domestic Product (GDP) forecast. The agency now expects China 2023 GDP growth at 8.4%, up from 8.1% prior.

Support levels:

S1: 89.40 (5-DMA)

S2: 88.24 (50% Fib)

Resistance levels:

R1: 90.69 (38.2% Fib)

R2: 90.98 (21-EMA)

Summary: AUD/JPY trades with a bullish bias. Scope for test of 21-EMA at 90.98.