Konstantin Boykachev

CEO Proforexea LLC

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Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

Blog Post

Fundamental Analysis of AUD/JPY for September 20, 2018

September 20, 2018 Analytics

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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

analytics5ba3b482ad783.png

The material has been provided by InstaForex Company – www.instaforex.com

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