- The AUD/JPY begins the Asian session on the right foot, eyes 81.00 amid a mixed-market sentiment.
- Australian Retail Sales could offer fresh impetus to the pair.
- Japan’s COVID-19 emergency state could be lift-off on Thursday.
On Monday, the AUD/JPY began the week on the right foot, finishing the day recording a gain of 0.74%. As the Asian session begins, the pair is trading at 80.84 steady.
The market sentiment is mixed as the Asian session kicks in. Equity futures in Asia post gains except for the Nikkei 225 and the Topix, losing 0.03% and 0.14%, respectively. In the meantime, the US 10-year Treasury yield rose to 1.50% amid inflationary fears and economic optimism.
Australian Retail Sales in the spotlight
Later during the day, In the Australian economic docket, AUD/JPY traders’ focus turns to the Preelimnary Retail Sales for August, expected to contract 2.5%, versus a 2.7% decrease in the previous month.
Meanwhile, in Japan, the state of emergency is expected to expire on Thursday. It will be the first time since early April that no prefectures will be under emergency. Japan’s Prime Minister Yoshihide Suga will announce the decision on Tuesday evening, following discussions with disease experts from the government’s coronavirus subcommittee.
On Monday, Bank of Japan (BoJ) Governor Haruhiko Kuroda said that the recovery would become more evident as the impact of the pandemic subsides. Further, he said that the “timing of consumption recovery will depend largely on developments regarding the pandemic.”
AUD/JPY Price Forecast: Technical outlook
1-hour chart
The AUD/JPY broke the 80.77 resistance that now acts as support. The simple moving averages (SMA’s) are located below the spot price, supporting the upside bias. However, the last three candles have been bearish, suggesting a possible re-test of an upslope trendline, around 80.77, is in the cards. In the case of that outcome, a bounce at that level could push the AUD/JPY towards the first resistance level at 81.14. A break above the latter would expose 82.00; however, there would be some hurdles on the way up. The first supply level would be September 10 swing highs around 81.40, followed by September 8 highs around 81.64.
On the flip side, a break beneath 80.77 could exert downward pressure on the AUD/JPY, exposing the 50-SMA as the first support level at 80.54. Nevertheless, if the bears would like to reclaim the bearish bias, they would need to break below the 100-SMA at 80.10
The Relative Strenght Index is at 62, heading slightly down. But as it is above the 50-midline, the upside bias remains.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price trades with mild negative bias, manages to hold above $2,300 ahead of US data
Gold price (XAU/USD) edges lower during the early European session on Wednesday, albeit manages to hold its neck above the $2,300 mark and over a two-week low touched the previous day.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.