AUD/JPY slumps as BoJ disappoints, sell rallies, target 81.75
Updated
The Japanese Yen spiked across the board as Bank of Japan disappointed by markets big time by keeping its monetary policy unchanged.
Yen jolted nearly 3% against the AUD in a knee-jerk reaction and AUD/JPY hit fresh 2-week lows at 82.43.
The BoJ kept rate at -0.1%, announced a lian support program for banks in areas hit by the recent earthquake.
The central bank said Japan economy is likely to expand moderately and consumer inflation to hit 2 pct during fiscal 2017.
Regarding the Aussie, lower than expected CPI data in Australia see a very strong potential for a rate cut in May.
Markets now focus on Australia’s very own ‘Super Tuesday’ (May 2nd) when RBA will meet to decide policy.
Focus now on BOJ Chief Kuroda’s presser for more insights on today’s monetary policy stance.
AUD/JPY Techs support downside. The pair finds next support at 82 (cloud base) and then at 81.75 (trendline).
Breaks below strong trendline support at 81.75 will see downside upto 79.60 (Feb 24th lows).
Resistance on the upside is located at 84.08 (cloud top), 84.94 (10-DMA) and 85.12 (5-DMA).
Good to sell rallies around 83.10, SL: 84, TP: 82.50/82/81.75
Yen jolted nearly 3% against the AUD in a knee-jerk reaction and AUD/JPY hit fresh 2-week lows at 82.43.
The BoJ kept rate at -0.1%, announced a lian support program for banks in areas hit by the recent earthquake.
The central bank said Japan economy is likely to expand moderately and consumer inflation to hit 2 pct during fiscal 2017.
Regarding the Aussie, lower than expected CPI data in Australia see a very strong potential for a rate cut in May.
Markets now focus on Australia’s very own ‘Super Tuesday’ (May 2nd) when RBA will meet to decide policy.
Focus now on BOJ Chief Kuroda’s presser for more insights on today’s monetary policy stance.
AUD/JPY Techs support downside. The pair finds next support at 82 (cloud base) and then at 81.75 (trendline).
Breaks below strong trendline support at 81.75 will see downside upto 79.60 (Feb 24th lows).
Resistance on the upside is located at 84.08 (cloud top), 84.94 (10-DMA) and 85.12 (5-DMA).
Good to sell rallies around 83.10, SL: 84, TP: 82.50/82/81.75
Trade closed: target reached
Note
The pair finds strong support at 82 levels which is a psychological barrier and daily cloud base.If the pair sees a clear break below 82 levels we see scope for test of 81.30 (trendline).
Daily charts suppoort further downside, but we do not see confirmation on weeklies.
We advise risk averse to book full profits in the pair. Else you can book partial profits, lower trailing stops to 82.50, target 81.30.
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