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AUD/JPY struggles to extend gains beyond 87

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 6, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The AUD/JPY cross reverses a spike to highs and now retreats below 87 handle, as markets continue to digest the latest RBA Statement of Monetary Policy (SoMP), which turned out to be mixed.

    AUD/JPY trades below daily pivot at 86.96

    Currently, the AUD/JPY pair trades modestly flat at 86.93, easing-off session highs posted at 87.10 in early Asia. The cross in the AUD/JPY trades largely subdued mainly driven by renewed strength seen in the Japanese yen versus its American counterpart.

    Focus now turns towards BOJ Kuroda’s speech, with markets anticipating no new surprising from Mr. Kuroda, as he is expected to repeat the same old tune. Hence, his speech is expected to have limited impact on the cross.

    While the Aussie remains pressured following the release of RBA SoMP, which showed that the central bank downwardly revised CPI and GDP forecasts, and left doors open for further easing.

    In the session ahead, the cross will take cues from the sentiment on the European stocks ahead of the crucial US NFP report.

    AUD/JPY Technical Levels

    To the upside, the next resistance is located at 87.35 (Nov 5 High) and above which it could extend gains to 87.66/86 (100-DMA/ Oct 27 High). To the downside immediate support might be located 86.57/46 (daily low/10-DMA) below that at 86.12 (50-DMA).
    For more information, read our latest forex news.

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