FxWirePro: JPY Strengthens Across the Board As BoJ Stands Pat, Sell AUD/JPY Rallies, Target 81.75

FxWirePro: JPY Strengthens Across the Board As BoJ Stands Pat, Sell AUD/JPY Rallies, Target 81.75

28 April 2016, 06:39
Roberto Jacobs
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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



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