The 26 February AUDJPY Technical Analysis shows that the pair opens with an upward gap, but turning away from 84.00 major handle. Read on for more details.
26 February, GKFX – AUD/JPY kicked off trading this week with a small gap, currently consolidating just beneath the 84.00 handle while the gap still remains unclosed at 83.76.
Aussie Remains Weaker Against The JPY
The Aussie has been pummeled by the Yen in rough trading, closing lower for five consecutive weeks as middling economic data for Australia and broad base Yen-buying dragging the pair down the charts.
The JPY will see the Economic Index early today at 05:00 GMT, followed by Retail Trade figures late Tuesday at 23:50. The Yen may find a reprieve from the upward pressure this week as Nomura pointed out in a note, where analysts expect inflation figures for Japan to remain unchanged from the January release.
The Yen's upward march has begun to grind to a halt as the Bank of Japan's (BOJ) constant pressure on markets starts to undermine the currency's strength; a strengthening Yen undermines what little expansionary growth Japan is experiencing, and the central bank has stepped up their vocalizations, hinting at a willingness to step into markets directly if things don't begin to improve soon.
26 February AUDJPY Technical Analysis
The pair remains steeply bearish on Daily candles, trading far below the 200-day SMA and the 34 EMA having crossed the major indicator lower, while H4 charts show a potential floor with the pair failing to break below 83.30 two weeks in a row. The gap at the week opener currently remains unfilled, with intraday support at 83.63 and 83.51, and resistance sitting heavy at 84.06 and 84.20.
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