09.11.201808:23 Forex Analysis & Reviews: Fundamental analysis of AUD/JPY for November 9, 2018

AUD/JPY has been quite impulsive with the recent bullish gains which lead the price above 82.00 area with a daily close in a non-volatile manner. AUD has been quite positive with the recent economic reports which helped the currency to gain and sustain momentum over JPY.

AUD has been the dominant currency in the pair since the price bounced off the 78.50 area a few weeks earlier. Recently AIG Services Index report was published with a decrease to 51.1 from the previous figure of 52.5, ANZ Job Advertisement increased to 0.2% from the previous negative value of -0.7% and Cash Rate remained unchanged at 1.50% as expected while RBA Statement was quite hawkish with the current economic stability. Today Home Loans report was published with an increase to -1.0% from the previous value of -2.2% which failed to meet the expectation of -0.9% and RBA Monetary Policy Statement published today was quite hawkish as well which is expected to lead to further growth in the future for AUD against JPY in the process.

On the JPY side, having certain financial volatility and complications, JPY gained certain momentum over AUD today despite the worse outcome of the economic report. Recently JPY Bank Lending report was published with a decrease to 2.2% from the previous value of 2.3% which was expected to increase to 2.4%, Core Machinery Orders decreased significantly to -18.3% from the previous value of 6.8% which was expected to be at -9.5% and Current Account report decreased to 1.33T from the previous figure of 1.43T which was expected to increase to 1.36T. Today M2 Money Stock report was also published with decrease to 2.7% which was expected to be unchanged at 2.8%.

As of the current scenario, JPY is still struggling with the worse economic reports whereas AUD maintained the positive momentum fundamentally which is expected to lead to further gains on the AUD side while certain corrections may be observed in the way in the coming days.

Now let us look at the technical view. The price is currently quite bearish after the recent bullish rejection yesterday which is expected to lead the price towards 81.50-82.00 support area before the price starts to push higher towards 83.50 area in the coming days. As the price remains above 80.50 with a daily close, the bullish bias is expected to continue.

SUPPORT: 80.50, 81.50, 82.00

RESISTANCE: 83.50, 85.00

BIAS: BULLISH

MOMENTUM: VOLATILE