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3 Jun 2014
AUD/JPY has stuck in a range ahead of RBA
FXStreet (Moscow) - AUD/JPY is oscillating in a 30-pip range ahead of RBA monetary policy decision.
What does RBA have in store?
AUD/JPY touched the low of 94.28 early on Monday, but the downside was not sustained as the cross reversed nearly all the losses during European and American hours. This is quite understandable, as the cross is influenced by Aussie sentiments that turned sour after the Australia published disappointing Q1 business inventories report, though JPY weakening across the board due to better risk profile initiated AUD/JPY recovery. Now the cross is sitting quietly in a narrow range, waiting for the RBA rate decision and accompanying statement. If the central bankers sound dovish enough or try to talk Aussie down, the cross may return to yesterday’s low at 94.28. Once it is broken, 94.00 will come into sight. The upside movement might be limited by 95.00.
What price levels and patterns have to be considered?
With spot trading at 94.72, we can see next resistance ahead at 94.76 (Weekly High), 94.85 (Daily High), 94.91 (Yesterday's High), 94.96 (Daily Classic R1) and 95.18 (Weekly Classic R1).
Support below can be found at 94.66 (Daily Open), 94.63 (Daily 20 SMA), 94.61 (Daily Classic PP), 94.61 (Hourly 20 EMA) and 94.49 (Daily Low).
What does RBA have in store?
AUD/JPY touched the low of 94.28 early on Monday, but the downside was not sustained as the cross reversed nearly all the losses during European and American hours. This is quite understandable, as the cross is influenced by Aussie sentiments that turned sour after the Australia published disappointing Q1 business inventories report, though JPY weakening across the board due to better risk profile initiated AUD/JPY recovery. Now the cross is sitting quietly in a narrow range, waiting for the RBA rate decision and accompanying statement. If the central bankers sound dovish enough or try to talk Aussie down, the cross may return to yesterday’s low at 94.28. Once it is broken, 94.00 will come into sight. The upside movement might be limited by 95.00.
What price levels and patterns have to be considered?
With spot trading at 94.72, we can see next resistance ahead at 94.76 (Weekly High), 94.85 (Daily High), 94.91 (Yesterday's High), 94.96 (Daily Classic R1) and 95.18 (Weekly Classic R1).
Support below can be found at 94.66 (Daily Open), 94.63 (Daily 20 SMA), 94.61 (Daily Classic PP), 94.61 (Hourly 20 EMA) and 94.49 (Daily Low).