AUD/JPY Price Analysis: Corrective pullback approaches 200-HMA after RBA Minutes
|- AUD/JPY extends rebound from 50% Fibonacci retracement level on RBA Minutes.
- RBA policymakers hint at further rate hikes but signal uncertainty ahead, per the minutes.
- RSI recovery from oversold territory also favors buyers to aim for the previous support line.
- Two-week-old horizontal support zone could test bears past 93.10.
AUD/JPY picks up bids to consolidate intraday losses around 93.60 during Tuesday’s Asian session. In doing so, the cross-currency pair tries to cheer cautiously optimistic statements from the Reserve Bank of Australia’s (RBA) Minutes of the latest monetary policy meeting.
RBA Minutes mentioned that the board expects to take further steps in the process of normalizing monetary conditions over the months ahead, but it is not on a pre-set path, per Reuters.
Technically, AUD/JPY rebounds from the 50% Fibonacci retracement level of July 27 to August 02 downturn. The recovery moves also gain support from the RSI (14) as it recovers from the oversold territory.
However, the 200-HMA level surrounding 93.85 restricts the immediate upside of the AUD/JPY pair ahead of the previous support line from August 05, close to the 95.00 threshold at the latest.
On the contrary, a downside break of the 50% Fibonacci retracement level of 93.10 could quickly fetch the AUD/JPY prices toward the fortnight-long horizontal support area near 93.20-30.
AUD/JPY: Hourly chart
Trend: Limited upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.