AUD/JPY starts the new week trying to gain, mounts 84.10 in early Asia
|- AUD/JPY up in early trading to start the new week.
- Aussie gaining on Yen data miss.
AUD/JPY lifted early in the new trading week following softer-than-expected trade balance figures for Japan, testing the waters just beneath 84.20 as of writing. Asia session will be thin as Chinese banks take the first half of the week off to celebrate Chinese New Year.
Merchandise Trade Balance and Imports both came in as a soft miss for Japan, with Imports showing a steeper decline than expected, coming in at 7.9%, well under the previous 14.9%. Meanwhile, Merchandise Trade Balance came in better than expected but still a downer, with the Japanese economy recording a 943.4 billion Yen deficit over the previous surplus reading of 358.7B Yen.
Bullish prospects for the Aussie remain limited looking forward, as hampered economic growth in Australia has left the Reserve Bank of Australia (RBA) lagging far behind other central banks in their plans to begin increasing rates, with analysts at Westpac largely expecting the RBA to stand pat through this year and 2019 as well. The RBA's February Meeting Minutes will drop on Tuesday at 00:30 GMT, but little action can be expected as the RBA's statements and outlook on the Australian economy have been well-telegraphed.
AUD/JPY Technicals
The Aussie is continuing to dropoff in the face of Yen strength, trading consistently lower in February, and bearish pressure increasing as the 34-EMA crosses down below the 200-day SMA, trading well above current prices, at 86.50. H4 charts paint an equally bearish picture, with the pair dropping consistently for two weeks below a bearish 34-EMA. Current support can be found at 83.90 and 83.40, while bullish action will be constrained by resistance at 84.30 and 84.60.
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.