AUD/JPY down in the overnight session after a flat Monday

  • AUD/JPY tussling as Aussie bullishness competes with Yen buyers.
  • Asia pairs at the mercy of market sentiment until BoJ minutes late Tuesday.

The AUD/JPY had slid slightly in the overnight session, trading down into 83.60 territory just ahead of the Tokyo market open. The pair shifted sideways in Monday's trading as market sentiment continues to drive trading with the first half of the week quiet with little impactful macro data on the calendar. The Aussie managed to catch some bids following headlines that Australia secured exemptions from Trump's tariffs on steel and aluminum, but risk appetite is capped off thanks to disappointing wage growth figures buried in last Friday's jobs report and fissures appearing in the Japanese political arena following revelations that key figures in the Japanese parliament, namely the Prime Minister Shinzo Abe and Finance Minister Aso forged documents that scratched the PM's wife's name from documents involved in the selling of government land to a school developer at a steep discount to their proposed face value.

The Reserve Bank of Australia's (RBA) assistant governor, Michele Bullock will be giving a speech at 00:10 Tuesday, but any impact will be limited as her focus will not be on monetary policy. Following that will be Home Loans figures for February, and expectations are not high with forecasts calling for a mild contraction of -0.1% compared to the previous reading of -2.3%. With little else of note on the macro calendar for the week, the Aussie can expect to be led by the nose through swings in market sentiment.

The Yen will be seeing the Bank of Japan's (BoJ) Monetary Policy Meeting Minutes late Tuesday at 23:50, and the JPY can expect to continue to bump upwards in the charts as market sentiment sours in the Asia market session as the cronyism headlines plaguing Japan sink their talons into risk appetite.

AUD/JPY Technicals

Daily candles see the pair trading above the 8 EMA at 83.37, but still below declining resistance from the declining 34 EMA at 84.50. H4 charts see the pair making a possible new high at 84.05, and a correction from this level could see the AUD/JPY back to the 50% Fibo level near 82.75.

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