FxWirePro: JPY Strengthens Across the Board As BoJ Stands Pat, Sell AUD/JPY Rallies, Target 81.75
- The Japanese Yen spiked across the board as Bank of Japan disappointed by markets big time by keeping its monetary policy unchanged.
- Yen jolted nearly 3% against the AUD in a knee-jerk reaction and AUD/JPY hit fresh 2-week lows at 82.43.
- The BoJ kept rate at -0.1%, announced a lian support program for banks in areas hit by the recent earthquake.
- The central bank said Japan economy is likely to expand moderately and consumer inflation to hit 2 pct during fiscal 2017.
- Regarding the Aussie, lower than expected CPI data in Australia see a very strong potential for a rate cut in May.
- Markets now focus on Australia’s very own ‘Super Tuesday’ (May 2nd) when RBA will meet to decide policy.
- Focus now on BOJ Chief Kuroda’s presser for more insights on today’s monetary policy stance.
- AUD/JPY Techs support downside. The pair finds next support at 82 (cloud base) and then at 81.75 (trendline).
- Breaks below strong trendline support at 81.75 will see downside upto 79.60 (Feb 24th lows).
- Resistance on the upside is located at 84.08 (cloud top), 84.94 (10-DMA) and 85.12 (5-DMA).
Recommendation: Good to sell rallies around 83.10, SL: 84, TP: 82.50/82/81.75
The material has been provided by InstaForex Company - www.instaforex.com