- The AUD/JPY is negotiated above 94.00 as the feeling of risk improves and retail sales in China exceed expectations, supporting the Australian dollar.
- The Bank of Japan is expected to maintain its rates at 0.50% on Tuesday, which could support the strength of the Aud/JPY.
- The Australian dollar remains firm in the face of divergent policy perspectives between RBA and Boj.
The AUD/JPY is negotiating stronger on Monday, supported by the improvement of the feeling of risk and the divergent policy perspectives between the Bank of the Australian Reserve (RBA) and the Bank of Japan (BOJ).
The torque remains about 94.46 at the time of writing, with an increase of more than 1% in the day, extending the profits as investors transfer capital to higher performance coins, driven by the divergent perspectives of monetary policy and an increase in the feeling of risk.
The appetite for the risk of investors improved after alleged diplomatic efforts of Iran through Gulf intermediaries, pointing out a possible interest in reducing tensions with Israel. Although a truce or formal agreement has not been reached, the reports helped improve the feeling of the market.
As a result, the demand for shelter coins such as the Japanese Yen (JPY) decreased, while the Australian dollar (AUD) found support in the strong retail sales of May in China.
The operators are also attentive to the BOJ’s policy decision on Tuesday, where the Central Bank is expected to maintain rates at 0.5% and could provide updated guidance on the rhythm of reduction of their government bond purchases.
With the RBA maintaining a relatively Hawkish bias, the divergence in monetary policy continues to favor the rise in the aud/JPY.
AUD/JPY Shoots above 94.00
The Aud/JPY is negotiating on Monday, keeping about 94.46 at the time of writing. After bouncing in the single mobile average (SMA) of 50 days in 92.42, the torque has exceeded the midpoint of the fall from November to April, in 94.23.
A morning star reversion pattern has formed, a three -candle pattern that often indicates a reversal of bullish trend, above the 38.2% fibonacci setback in 92.30, highlighting a change in the impulse after the decline of last week.
The immediate resistance is found in 94.23. A closure above this level could pave the way to 96.16, which marks the 61.8%fibonacci setback, followed by the psychological barrier in 97.00.
In the lower part, the initial support is seen at 92.30, aligning with the base of the morning star and the 38.2%fibonacci recoil level. Below that, the retreat of 23.6% in 89.91 offers a deeper support, with the minimum of March at 86.05 marking a critical objective down if the bearish pressure returns.
AUD/JPY DAILY GRAPH
Meanwhile, the relative force index (RSI) in the daily framework is approaching 60, turning up without breaking the overcompra territory.
This suggests that the bullish impulse is being built but still has room to extend before entering exhaustion, since the RSI is not yet in overcompra territory, indicating potential for an additional upward movement.
Economic indicator
BOJ interest rates
He Bank of Japan Set the interbank interest rate. This rate affects a range of interest rates set by commercial banks, construction societies and other institutions towards their own savers and borrowers. It also affects the price of financial assets, such as bonds, actions and exchange rates, which affect the consumer and the demand for businesses in a variety of forms. If the Bank of Japan has a firm perspective with respect to the Japanese economy and increases the current interest rate, this is upward to the YEN. Instead, a slight perspective that leads to the bank to reduce or maintain current types will be bassist for the YEN.
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Next publication:
Mar Jun 17, 2025 03:00
Frequency:
Irregular
Dear:
0.5%
Previous:
0.5%
Fountain:
Bank of Japan
Japan Faqs Bank
The Bank of Japan (BOJ) is the Japanese Central Bank, which sets the country’s monetary policy. Its mandate is to issue tickets and carry out monetary and foreign exchange control to guarantee the stability of prices, which means an inflation objective around 2%.
The Bank of Japan has embarked on an ultralaxa monetary policy since 2013 in order to stimulate the economy and feed inflation in the middle of a low inflation environment. The bank’s policy is based on the Quantitative and Qualitative Easing (QQE), or ticket printing to buy assets such as state or business bonds to provide liquidity. In 2016, the Bank redoubled its strategy and relaxed even more policy by introducing negative interest rates and then directly controlling the performance of its state bonds to 10 years.
The massive stimulus of the Bank of Japan 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 combat inflation levels that have been in historical maximums. Japan Bank’s policy to maintain low types has caused an increase in differential with other currencies, dragging the value of YEN.
The weakness of the YEN and the rebound in world energy prices have caused an increase in Japanese inflation, which has exceeded the 2% objective set by the Bank of Japan. Even so, the Bank of Japan judges that the sustainable and stable achievement of the 2%objective is not yet glimpsed, so an abrupt change of current monetary policy seems unlikely.
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.
