- AUD/JPY revisits 50-hour moving average support.
- Friday’s doji needs a bullish follow-through.
- Kuroda’s dovish talk fails to weaken Yen.
The early dip in Yen found takers, thus AUD/JPY faded the spike to 84.04 and fell back to 50-hour moving average support of 83.71.
As of writing, the currency pair is down 6 percent from the Jan. 23 high of 8907. It seems the sharp appreciation in Yen is not going down well with the Bank of Japan policymakers. For instance, BOJ’s Kuroda was out on wires earlier today, repeating the age-old message that the central bank would continue powerful easing. However, Kuroda seems to have lost his mojo as Yen buyers paid little attention to his dovish talk.
That said, the technical set up favors a corrective rally in the short-run. A positive close today (preferably above the Asian session high of 84.04) would confirm bullish doji reversal.
AUD/JPY Technical Levels
A close above 84.04 could see the pair rally to 84.86 (Feb. 21 high). Acceptance above the same would mean the pair has bottomed out and thus unwinding of positional shorts could yield 86.57 (200-day MA). On the other hand, a violation at 83.52 (Feb. 22 low) would open up downside towards 83.27 (Friday’s doji candle low) and 83.00 (psychological level).