AUD/JPY Price Analysis: Stays inside key DMA envelope below 82.50 after Japan GDP, RBA Minutes
|- AUD/JPY refreshes intraday bottom while consolidating the previous day bounce off one-week low.
- Preliminary Japan Q4 GDP missed upbeat forecasts but stayed positive, RBA Minutes repeated readiness to be patient on policy moves.
- 200-DMA acts as immediate hurdle ahead of previous support line from late January.
- 50-DMA, 50% Fibonacci retracement restrict nearby downside amid bullish MACD signals.
AUD/JPY seesaws between the 200-DMA and 50-DMA, taking offers to refresh intraday low around 82.20 as markets witness the duet of Japan Q4 GDP and RBA Minutes during Tuesday’s Asian session.
That said, Japan’s Preliminary Gross Domestic Product (GDP) for Q4 rose 1.3% QoQ versus 1.4% expected and -0.9% prior. Further, GDP Annualized also reversed the previous readouts of -3.6% with +5.4% figures but stayed below 5.8% market consensus. Further, the preliminary readings of GDP Deflator dropped to -1.3% YoY, below -1.2% expected and prior.
Read: USD/JPY hovers around mid-115.00s amid sluggish yields, mixed Japan Q4 GDP
On the other hand, the latest Minutes of the Reserve Bank of Australia (RBA) monetary policy meeting stated, “Members observed that the achievement of the goals was within sight for the first time in several years.” However, the comments line, “Board is prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve,” challenged AUD/USD buyers.
Read: RBA minutes: Members observed that inflation had picked up more quickly than the bank had expected
Technically, the AUD/JPY pair keeps the last week’s downside break of an upward sloping trend line from January 28, which in turn favors sellers. However, the 50-DMA level of 82.20 restricts the quote’s immediate decline.
Also challenging AUD/JPY sellers is the 50% Fibonacci retracement (Fibo.) of December-January upside, near 81.50.
Should the quote drop below 81.50, the 61.8% Fibo. near 80.90 may test the bears before directing them to January’s low near 80.35 and the 80.00 threshold.
Meanwhile, the 200-DMA level of 82.40 guards recovery moves of the pair ahead of the support-turned-resistance near 82.65.
AUD/JPY: Daily chart
Trend: Sideways
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.