AUD/JPY defies previous day’s losses, trades around 83.00 level


  • AUD/JPY trades at the 83.00 level, BoJ’s fiddle with short-term borrowing scheme.
  • The latest pullback in the US treasury yields has resulted in an improvement in Yen.
  • AUD/JPY will closely monitor RBA Ellis speech and Japan’s National CPI data.

AUD/JPY defies the previous day's losses and continues to trade positively around the 83.00 level on Thursday as investors put their hopes on the safe-haven, Yen. The pair is trading at 82.94 during early Asian hours.

On Wednesday, the pair suffered a blow after the Reserve Bank of Australia (RBA) warned of a margin hit from a low-interest-rate environment and mortgage competition. However, the market participants' reaction was not strong enough as it somewhat gets affected with wages data supported by Reserve Bank Governor Philip Lowe's dovish stance.

In the latest news, the Bank of Japan's (BoJ's) short-term borrowing scheme to support smaller lenders, affected by ultra-low interest rates, damaged term borrowing costs. It further complicated the central bank's plans to eventually ditch the easy monetary policy. So much so, Tokyo's currency market is squeezed due to this fiddly balancing act.

As per a Reuters report, "the core of the BoJ's monetary policy seems to be wavering. The central bank must decide what it's going to prioritise."

Stakeholders of the safe-haven, Yen, will be hopeful towards Japan's COVID-19 fiscal stimulus package. The aid worth 40 trillion yen ($350 billion) is expected to revive the pandemic and oil price-hit economy. Investors will note that Japan's has overcome previous vaccine hesitancy and has achieved the highest inoculation rate in the Group of Seven (G7) without any mandates.

It is worth mentioning that the latest pullback in the US treasury yields has pushed the USD/JPY southwards, resulting in an improvement in the local currency Yen. The USD/JPY is reeling under pressure caused by declining US inflation pressures and rising rate hike expectations.

The risk-barometer pair is likely to witness some movements post multiple announcements coming from Japan and Australia. These announcements include a speech by Reserve Bank of Australia (RBA) Assistant Governor Luci Ellis and Japan's National Consumer Price release.

AUD/JPY technical levels

 

Overview
Today last price 82.92
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 82.92
 
Trends
Daily SMA20 84.45
Daily SMA50 82.73
Daily SMA100 81.9
Daily SMA200 82.92
 
Levels
Previous Daily High 83.92
Previous Daily Low 82.82
Previous Weekly High 84.18
Previous Weekly Low 83
Previous Monthly High 86.26
Previous Monthly Low 79.9
Daily Fibonacci 38.2% 83.24
Daily Fibonacci 61.8% 83.5
Daily Pivot Point S1 82.52
Daily Pivot Point S2 82.12
Daily Pivot Point S3 81.42
Daily Pivot Point R1 83.61
Daily Pivot Point R2 84.31
Daily Pivot Point R3 84.71

 

 

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