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20.09.201816:56 Forex Analysis & Reviews: Fundamental Analysis of AUD/JPY for September 20, 2018

Long-term review
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AUD/JPY has been impulsive and non-volatile with the recent bullish gains which is expected to push further upward in the coming days. As JPY has been quite worse with the recent economic reports, AUD managed to sustain the bullish pressure in the pair.

Recently the minutes of the lateat policy meeting of the Reserve Bankof Australia were released which revealed quite hawkish stance, leading to further gains on the AUD side. Moreover, economic reports like HPI was unchanged as expected at -0.7% and MI Leading Index report was published with an increase to 0.1% from the previous value of 0.0%. Today RBA Bulletin covered certain issues like The Effect of Minimum Wage, Access to Small Business Finance, and The New Payments Platform which had positive outcome in the process.

On the JPY side, as BOJ Policy Rate was published unchanged at -0.10% recently, the sustainable long-term policy has started to weaken the currency in the process. Recently Japan's Trade Balance report was published with a decrease to -0.19T from the previous figure of -0.10T which was expected to be at -0.14T. Tomorrow, National Core CPI report is going to be published which is expected to increase to 0.9% from the previous value of 0.8%, Flash Manufacturing PMI is expected to increase to 53.1 from the previous figure of 52.5, and All Industry Activity is also expected to increase to 0.2% from the previous value of -0.8%.

At present, AUD is quite solid in light of positive economic reports and events, whereas JPY having worse economic results is quite optimistic with the upcoming economic reports. If the reports meet market expectations or reveal better-than-expected readings, then certain volatility and counter momentum can be observed in the market.

Now let us look at the technical view. The price has been impulsive as well as non-volatile with the bullish gains after breaching above 80.50 and dynamic level of 20 EMA with a daily close. After the Bullish Regular Divergence hitting the pair during the impulsive bearish momentum, the price has been quite bullish and continue to remain bullish in the process. As of the current market structure, the price is expected to push higher towards 82.00 area whereas a rejection with a daily close may lead the price again pushing lower with target towards 80.50 in the coming days. On the other hand, a daily close above 82.00 area is expected to push the price higher towards 84.50 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

RESISTANCE: 82.00, 84.50

BIAS: BULLISH

MOMENTUM: IMPULSIVE

Exchange Rates 20.09.2018 analysis

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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