AUD/JPY beginning to freeze in place just above 82.00

The Aussie is trading tightly with the Yen in the run-up to the BoJ's big showing this week.
Aussie data is ticking in softer than expected, boding poorly for the AUD's chances of maintaining a bullish stance.

Joshua Gibson FXStreet

The AUD/JPY is seeing tight action with limited directional movement ahead of a key showing for the Bank of Japan (BoJ), and the Aussie-Yen pairing is trading stiffly near 82.20.

The AUD/JPY bounced between swing points from 82.00 to 82.80 last week, and this week has seen a steep contraction in the pair's movement as traders await the BoJ's latest monetary policy statement, due today at 02:00 GMT.

Aussie traders are also awaiting Building Permits figures due at 01:30 GMT, which are expected to come in flat at 0.0% after the previous month's reading came in at -3.2%. HIA New Home Sales data already disappointed AUD traders, clocking in at 2.2% versus the expected 4.5%, and although the indicator has improved from the previous period's -4.4% contraction, the improvement came in much softer than expected.

AUD/JPY Levels to watch

The Aussie bottomed out against the Yen near 81.80 late last week after slipping from a weekly high just shy of 82.90, and this week has seen a very gradual lift from the opening quotes near 82.00. A break below last week's bottom of 81.80 will see the pair exposed to fresh declines into early July's lows near the 81.00 technical level, while a bullish recovery still has plenty of ground left to recover if the AUD/JPY is going to reclaim July's highs near 83.90.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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