- Yen fails to benefit much comments from BOJ Governor Haruhiko Kuroda that the central bank is ready to act and could deepen negative rates, or do more QE, if needed.
- Remains bid as the prevalent weakness in Asian equities was seen supporting its safe-haven appeal.
- AUD/JPY trades a narrow range, struggles to break stiff resistance by daily cloud at 77.00.
- Further upside can be seen only if clear breakout above cloud base is evidenced, scope then for test of 100-DMA at 78.01.
- On the flipside break below major trendline support at 75.95 could see downside upto 74.55 level.
- Major resistance levels - 77.54 (50-DMA), 78, 78.01 (100-DMA), 78.06 (cloud top)
- Major support levels - 77.0 (cloud base), 76.66 (Sept 20 lows), 76.38 (Double bottom - Sept 14 &19), 75.95 (trendline)
- Technical indicators on daily charts have a largely neutral bias, giving no clear indications of further direction.
Recommendation: Wait for clear indication to initiate trade.
