AUD/JPY technical analysis: Pulls back from 50-day EMA after RBA’s rate cut
- AUD/JPY fails to break 50-day EMA, four-week-old support-line in the spotlight for now.
- RBA matched market expectations of a 0.25% rate cut.
Following initial spikes to 50-day exponential moving average (EMA), AUD/JPY aims to revisit short-term support-line while taking rounds to 72.85 during early-Tuesday.
The Reserve Bank of Australia (RBA) matched market-wide expectations while announcing a 0.25% Cash Rate cut. However, RBA statement offered details of decision and conveys a dovish bias.
Read: RBA: Reasonable to expect extended period of low rates
With the bearish signal from 12-day moving average convergence and divergence (MACD) grabbing sellers’ attention, a downside break of near-term rising trendline support, at 72.75, can extend declines to 38.2% Fibonacci retracement of July-August downpour, at 72.37.
On the upside, pair’s successful break of 50-day EMA level, at 73.30 now, could push buyers to confront 61.8% Fibonacci retracement level surrounding 73.90. However, September month high near to 74.50 could restrict the pair’s further upside.
AUD/JPY daily chart
Trend: pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
