AUD/JPY Price Analysis: Advances beyond 80.00 on RBA status-quo
- AUD/JPY refreshes intraday high, prints two-day rebound from 15-week low.
- RBA keeps monetary policy unchanged, cites limited risk from Omicron.
- Convergence of previous support line, 61.8% Fibo. challenges recovery moves.
- Horizontal area from September holds the key to yearly bottom.
AUD/JPY extends Friday bounce off the lowest levels since late August after the Reserve Bank of Australia’s (RBA) monetary policy meeting on early Tuesday. That said, the cross-currency pair refreshes day’s top around 80.25 by the press time.
The RBA matches market expectations while keeping the benchmark rate unchanged at 0.1% and the weekly bond purchases of $4.0 billion intact until at least mid-February 2022. However, the Australian central bank’s comments favored AUD/JPY bulls. “The omicron strain is a new source of uncertainty, but it is not expected to derail the recovery,” said the latest RBA statement.
Read: RBA: Will not increase the cash rate until actual inflation is sustainably within the 2% to 3% target range
In addition to the RBA’s cautious optimism, the RSI rebound from oversold territory and the AUD/JPY pair’s ability to recover from a short-term horizontal area favors buyers.
At the latest, a confluence of the 61.8% Fibonacci retracement (Fibo.) of August-October upside and previous support line from August, around 81.05-10, seems to lure the AUD/JPY buyers.
Should the quote manages to rise past 81.10, the 100-DMA level of 81.78 will act as an additional check for the upside moves.
Alternatively, the resistance-turned-support from November 26, near 79.60, may test the AUD/JPY sellers ahead of the stated horizontal area near 78.85-80.
During the pair’s weakness past-78.80, the yearly low of 77.89 will be in focus.
AUD/JPY: Daily chart
Trend: Further recovery expected