AUD/JPY has been trading with lower volatility in the upward bias. Recently, the price went higher, breaking above the 85.70 area. AUD has been the dominant currency in the pair amid the latest positive Employment Change report which helped the currency to gain good momentum. Among other upbeat reports are MI Leading Index which was published as unchanged at 0.1% and Monetary Policy Meeting Minutes with the hawkish stance. These factors contributed to a greater bullish momentum. On the other hand, JPY has been struggling amid mixed Japan's economic reports which made the price lose grounds against AUD for a few days in a row. Today, the Bank of Japan Policy Rate report was published with the unchanged key interest rate at -0.10% as it was expected that did not help the currency to regain some momentum but could help to slow down the AUD impulsive pressure somehow. As for the current scenario, AUD is expected to dominate JPY in the coming days that is expected to push the price much higher. In the run-up to the Christmas holiday, Japan does not have any high impact news or event to help its currency regain momentum.
Now let us look at the technical chart. The price is currently showing some bullish pressure having some bearish rejection at the beginning of the day. Volatility is gradually waning with no deeper pullbacks recently. So the pair is likely to proceed impulsively towards 88.00 resistance area in the coming days. As the price remains above 85.50-70 area, the bullish bias is expected to continue further.
No comments:
Post a Comment