- The Aud/JPY weakens around 96.55 in the early Asian session on Monday, lowering 0.24% in the day.
- The crossing maintains the negative perspective below the 100 -day EMA with a bearish RSI indicator.
- The initial support arises at 94.72; The first bullish barrier is located at 98.02.
The Aud/JPY crossing attracts some sellers about 96.55 during Monday’s Asian negotiation hours. The Japanese Yen (JPY) is strengthened since Japan’s economy grew faster than expected in the fourth quarter (Q4), which triggers the expectation that the Bank of Japan (Boj) uploads the interest rates even more.
Japan’s Gross Domestic Product (0.7% intertrmetral expanded in Q4, compared to the previous 0.3% reading, showed the preliminary data on Monday. This figure was stronger than the expectation of 0.3%.
According to the daily chart, the Bassist Perspective of the Aud/JPY is still in force since the crossing remains limited below the 100 -day exponential (EMA) mobile average. In addition, the bearish impulse is supported by the relative force index (RSI), which is below the midline, suggesting that the lower resistance path is down.
The first bearish objective for the crossing arises at 94.72, the lower limit of the Bollinger band. Extended losses could see a fall to 93.59, the minimum of September 11, 2024. A decisive breakdown below the mentioned level could pave the way to 92.79, the minimum of August 18, 2023.
On the positive side, the 100 -day EMA at 98.02 acts as an immediate level of resistance for the crossing. The sustained trade above this level could attract some buyers to 98.53, the upper limit of the Bollinger band. Further north, the next obstacle is seen in 99.17, the maximum of January 7.
AUD/JPY DAILY GRAPH
And in Japanese faqs
The Japanese Yen (JPY) is one of the most negotiated currencies in the world. Its value is determined in general by the march of the Japanese economy, but more specifically by the policy of the Bank of Japan, the differential between the yields of the Japanese and American bonds or the feeling of risk among the operators, among other factors.
One of the mandates of the Bank of Japan is the currency control, so its movements are key to the YEN. The BOJ has intervened directly in the currency markets sometimes, generally to lower the value of YEN, although it abstains often due to the political concerns of its main commercial partners. The current ultralaxy monetary policy of the BOJ, based on mass stimuli to the economy, has caused the depreciation of the Yen in front of its main monetary peers. This process has been more recently exacerbated due to a growing divergence of policies between the Bank of Japan and other main central banks, which have chosen to abruptly increase interest rates to fight against inflation levels of decades.
The position of the Bank of Japan to maintain an ultralaxa monetary policy has caused an increase in political divergence with other central banks, particularly with the US Federal Reserve. This favors the expansion of the differential between the American and Japanese bonds to 10 years, which favors the dollar against Yen.
The Japanese Yen is usually considered a safe shelter investment. This means that in times of tension in markets, investors are more likely to put their money in the Japanese currency due to their supposed reliability and stability. In turbulent times, the Yen is likely to be revalued in front of other currencies in which it is considered more risky to invest.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
