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AUD/JPY: weighing to the downside below 20 DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - AUD/JPY is currently trading at 87.45 with a high of 87.61 and a low of 87.42.

    Risk sentiment dropped back in December and the cross fell back from the 200 DMA resistance with highs at 90.72 at the start of the month. Fundamentally, the RBA were on hold while the BoJ remains bullish about the economy and also held off from the need to extend the QQE programme, for the time being having only introduced very marginal measures to support the BoJ's efforts to meet their inflation target offering support in the Yen.

    However, the Fed was the main driver in the market while stock price volatility and an air of caution in the market persist as we head over to 2016 which should cap the upside. Eyes will be on the RBA in Feb and whether the Fed will hike again in Q1 / H1. Australian markets are closed today while Tokyo opens ahead of the US session while UK and Europe are out on a Bank Holiday with Boxing day landing on Saturday.

    AUD/JPY levels

    Technically, AUD/JPY was rejected at the 200 DMA at 90.27 today. Price now trades in a neutral position and just above the 100 DMA at 87.11 today and below the 20 DMA at 88.26. Momentum indicators are neutral as price moved into a phase of consolidation last week. We are just below the picot at 87.52 with S2 at 87.15 and S3 at 86.95. R13 is at 88.06.
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