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AUD/JPY gains momentum to the mid-96.00s following the BoJ rate decision

  • AUD/JPY attracts some buyers to 96.50 after the Bank of Japan's (BoJ) monetary policy meeting.
  • BoJ decided to maintain the status quo and keep the Yield Curve Control (YCC) policy unchanged.
  • The Reserve Bank of Australia stated that whether further tightening is required would be decided by data and assessment of risks.
  • Market players await November’s Japanese Trade Data and the Australian Westpac Leading Index, due on Wednesday.

The AUD/JPY cross gains traction during the early European session on Tuesday. The upward momentum of the cross is supported by the Japanese Yen (JPY) weakness following the Bank of Japan's (BoJ) monetary policy meeting. At press time, AUD/JPY is trading at 96.50, up 0.73% on the day.

On Tuesday, the BoJ decided to maintain the status quo and keep the short-term interest rate target and the 10-year JGB yield target unchanged at -0.1% and 0%, respectively. In response to the BoJ policy announcements, the cross has attracted some buyers and reached an intraday high of 96.61. Furthermore, the Japanese Finance Ministry is considering bringing forward its plan to reduce 20-year bonds by $1.39 billion from January, per Reuters.

On the Aussie front, the Reserve Bank of Australia (RBA) meeting minutes of December suggested that the central bank saw encouraging signs of progress on inflation, but this needed to continue. The RBA stated that whether further tightening is required would be decided by incoming data and the evolving assessment of risks, while adding that inflation expectations remained consistent with the inflation target. The more hawkish remarks from the RBA lift the Australian Dollar (AUD) against the JPY.

Traders will keep an eye on November’s Japanese Trade Data and the Australian Westpac Leading Index, due on Wednesday. On Friday, Japan’s National Consumer Price Index will be released. Traders will take cues from these figures and find trading opportunities around the AUD/JPY cross.

AUD/JPY

Overview
Today last price96.46
Today Daily Change0.65
Today Daily Change %0.68
Today daily open95.81
 
Trends
Daily SMA2096.75
Daily SMA5096.3
Daily SMA10095.38
Daily SMA20093.71
 
Levels
Previous Daily High96.14
Previous Daily Low95.15
Previous Weekly High96.15
Previous Weekly Low94.6
Previous Monthly High98.66
Previous Monthly Low95.61
Daily Fibonacci 38.2%95.77
Daily Fibonacci 61.8%95.53
Daily Pivot Point S195.26
Daily Pivot Point S294.71
Daily Pivot Point S394.27
Daily Pivot Point R196.25
Daily Pivot Point R296.7
Daily Pivot Point R397.25

Author

Lallalit Srijandorn

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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