AUD/JPY strengthens on rising BOJ easing bets

Omkar Godbole FXStreet Contributor

Offered tone around Yen gathered pace on increased prospects of BOJ easing, thus pushing AUD/JPY cross to a session high of 79.70 levels.

Recovers from 79.06

The cross recovered from the Asian session low of 79.06 to trade well above 79.42 (76.4% of Brexit day drop). Yen is being offered in Asia on speculation Bank of Japan may cut rates and/or expand QE on Friday. Latest Bloomberg survey has 75% of analysts forecast BOJ will expand easing this week.

The cross thus strengthened although lacked support from AUD/USD, which has trimmed gains from 0.7481 to 0.7466 levels.

AUD/JPY Technical Levels

A break above immediate hurdle of 0.7490 (50% of 0.7835-0.7145), above which prices could target 0.7571 (61.8% of 0.7835-0.7145). A violation there could yield test of 0.76. On the other hand, a breakdown of support at 0.7450 (38.2% of 0.6827-0.7835) could yield 0.70 under which losses could be extended to 0.7331 (50% of 0.6827-0.7835).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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