AUD/JPY Price Analysis: Looks set to visit immediate support below 85.00 ahead of RBA
|- AUD/JPY prints mild losses while stepping back from two-week-old horizontal resistance.
- Bearish MACD, downbeat market sentiment backs further weakness ahead of the key event.
- RBA is likely to keep the benchmark rate, bond purchase unchanged but Rate Statement will be the key to watch.
AUD/JPY bounces off intraday low while picking up bids to 84.60, down 0.05% on a day, during early Tuesday. Even so, the quote registers another failure to cross the horizontal hurdle established since April 20.
Not only the nearby resistance area close to 84.75-70 but the market’s risk-off mood and cautious sentiment ahead of the Reserve Bank of Australia’s (RBA) monetary policy meeting also weigh on the quote.
Read: AUD/USD remains pressured around mid-0.7700s on downbeat Australia trade data, RBA eyed
Given the bearish MACD and the latest pullback moves, AUD/JPY is more likely to retest an ascending support line from April 22, around 84.40, should the RBA disappoint markets.
However, any further weakness past-84.20 will be challenged by the 200-SMA level of 83.90.
On the flip side, optimistic comments from the RBA could again help AUD/JPY to battle the 84.70-75 immediate resistance area.
It should be noted that a clear rise beyond 84.75 will propel the quote to the previous month’s high near the 85.00 threshold ahead of targeting March’s high near 85.45.
AUD/JPY four-hour chart
Trend: Further weakness 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.