- AUD/JPY jumps to 98.00 as the BoJ is expected to delay plans of exiting an ultra-dovish stance.
- BoJ Ueda manifested a bleak assessment of Japan’s economic outlook.
- The RBA is expected to keep its OCR steady at 4.35%.
The AUD/JPY pair prints a fresh weekly high near 98.00 in Monday’s early American session as the market sentiment remains upbeat. The market mood remains cheerful as China’s better-than-projected Retail Sales and Industrial Production data for February indicated a robust recovery in domestic demand.
The Australian Dollar capitalizes on China’s upbeat data, which is considered a proxy for Chinese economic growth. Going forward, the next move in the Australian Dollar will be guided by the Reserve Bank of Australia’s (RBA) interest rate decision, which will be announced on Tuesday. The RBA is widely anticipated to keep the Official Cash Rate (OCR) steady at 4.35%.
Meanwhile, the Japanese Yen remains under pressure as Bank of Japan (BoJ) Governor Kazuo Ueda’s bleak assessment of the economy has undermined sticky inflation above 2% and higher wage hikes rewarded by big firms. Market expectations for the BoJ announcing an end to negative interest rates and the Yield Curve Control (YCC) policy have shifted for the April meeting as uncertainty persists over the wage price spiral.
AUD/JPY approaches the horizontal resistance of the Ascending Triangle pattern formed on a four-hour timeframe, plotted from the March 4 high at 98.13. The upward-sloping border of the aforementioned pattern is placed from March 11 low at 96.90.
The 20-day Exponential Moving Average (EMA) near 97.75 remains sticky to the risk-barometer, indicating a sideways trend.
The 14-period Relative Strength Index (RSI) oscillates inside the 40.00-60.00 region, which indicates indecisiveness among investors.
The appeal for the AUD/JPY would strengthen if the asset breaks above March 6 high at 98.27, which will drive the asset towards February 20 high at 98.61 and February 23 high at 99.06.
On the flip side, the asset's appeal could weaken if it drops below its March 15 low at 97.27. This would expose the asset to its March 11 low at 96.90. A breakdown below that would extend the downside towards its January 16 low at 96.59.
AUD/JPY four-hour chart
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD tumbles to three-week lows near 1.0750
Fresh headlines mentioning the imminence of US tariffs on the European Union put EUR/USD under heavy pressure and send it to the area of multi-week lows around 1.0750 on Wednesday.
GBP/USD retests the 1.2870 zone, or two-week lows
The Greenback's upside impulse is now gathering extra steam and motivates GBP/USD to recede to the area of new two-week troughs around 1.2870.
Gold remains slightly offered just above $3,000
Gold is trading in a narrow range on Wednesday but continues to hold firm just above the $3,000 mark. The precious metal is drawing support from upbeat sentiment in the broader commodities space, buoyed by Copper’s surge to a fresh all-time high earlier in the day.
Bitcoin holds $87,000 as markets brace for volatility ahead of April 2 tariff announcements
Bitcoin (BTC) holds above $87,000 on Wednesday after its mild recovery so far this week. A K33 Research report explains how the markets are relatively calm and shaping up for volatility as the market absorbs the tariff announcements.
Sticky UK services inflation shows signs of tax hike impact
There are tentative signs that the forthcoming rise in employer National Insurance is having an impact on service sector inflation, which came in a tad higher than expected in February. It should still fall back in the second quarter, though, keeping the Bank of England on track for three further rate cuts this year.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.