AUD/JPY loses traction near 95.35 following the People’s Bank of China (PBoC) rate decision.
The cross holds above the 50- and 100-hour EMAs; Relative Strength Index (RSI) holds above 50 in the bullish territory.
The immediate resistance level emerges at 95.60; the key support level is seen at 94.90.
The AUD/JPY cross edges lower to 95.35 during the Asian session on Wednesday. The cross faces some follow-through selling after Japan’s top currency diplomat Masato Kanda came out with verbal intervention remarks early Wednesday.
Kanda stated that the Japanese authorities will deal appropriately with FX moves and will closely watch them with a high sense of urgency. This, in turn, might drag the AUD/JPY lower and act as a headwind for the cross. Market players await the Bank of Japan (BoJ) interest rate decision on Friday for a clear direction for the pair.
The People’s Bank of China (PBoC) maintained benchmark lending rates steady on Wednesday, as expected by the market. The one-year Loan Prime Rate (LPR), was kept at 3.45%, while the five-year LPR was unchanged at 4.20%. Meanwhile, any signs from the Chinese authorities about the additional stimulus plans to deal with the property crisis might lift the China-proxy Australian dollar (AUD) and limit the downside of the AUD/JPY.
According to the four-hour chart, the path of least resistance for the AUD/JPY is to the upside as the cross holds above the 50- and 100-hour Exponential Moving Averages (EMAs). Meanwhile, the Relative Strength Index (RSI) holds above 50 in the bullish territory, which supports the buyers for now.
Looking at the upside, the immediate resistance level for AUD/JPY emerges near the upper boundary of the Bollinger Band at 95.60. A break above the latter will see a rally to 95.78 (a high of July 21) en route to a high of July 4 at 96.85. The next barrier to watch is a Year-To-Date (YTD) high of 97.62. and finally at 98.00 (a psychological round mark).
On the downside, the cross will meet the key support level near the confluence of the lower limit of the Bollinger Band and the 50-day EMA at 94.90. A breach of the latter will see a drop to 94.60 (the 100-hour EMA), followed by a psychological round figure at 94.00.
AUD/JPY four-hour chart
-638307716118082227.png)
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.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/aud-jpy-price-analysis-loses-traction-below-9550-the-key-contention-is-seen-at-9490-202309200152
