FxWirePro: AUD/JPY Struggles to Hold Gains Above the 80 Handle, Bias Higher
- AUD/JPY has re-taken the 80.00 handle post RBA minutes which showed that the members were not so dovish at the May 3rd meeting.
- Minutes revealed that "members discussed the merits of leaving interest rates on hold but decided on balance that a cut would help return inflation to target over time.
- Markets currently pricing out RBA rate cuts post publication of minutes, expect a potential more cautious approach towards cutting rates again.
- AUD/JPY is struggling to hold above the 80 handle, currently pared some gains to trade at 80.07 levels.
- Technicals support further upside in the pair, weakness only below 78.75.
- The pair has broken major trendline resistance at 79.90 and finds next hurdle at 80.65.
- Supports on the downside are seen at 78.75 (trendline), 78.63 and then 78.17.
Recommendation: Good to buy dips around 80 levels, SL: 79.45, TP: 80.40/80.65/80.90