The AUD/JPY looks set to print nine-day high above 83.33 as the Japanese Yen is being offered on fading North Korea risks. What else is explained in this 9 March AUDJPY Technical Analysis?
9 March, GKFX – In a stunning development, senior South Korean official visiting White House said North Korea's Kim is committed to denuclearization. Also, the officials hand-delivered Kim Jong Un's invitation, which has been accepted by Trump. The prospects of talks between North Korea and the US seems to have pushed the Yen lower against majors.
China factory-gate inflation prints below estimates
Meanwhile, China's producer price index (PPI) (factory-gate prices) dropped to 3.7 percent in February from previous month's print of 4.3 percent (expected 3.8 percent). However, China's February consumer inflation (2.9 percent) accelerated at its fastest year-on-year pace since November 2013 and that could only strengthen the bid tone around AUD/JPY. That said, North Korea's denuclearization offer is currently overshadowing the China data.
Ahead in the day, the pair could extend the gains if the stock markets respond positively to North Korea news. Also, the Bank of Japan (BOJ) rate decision and Kuroda's comments could influence the pair.
9 March AUDJPY Technical Analysis
The pair clocked a high of 83.24 and was last seen trading at 83.19. A break above 83.33 (March 6 high) would open doors for 84.00 (psychological hurdle) and 84.38 (38.2% Fib R of Jan. 23 high and March 5 low). On the downside, a move below 82.50 (previous day's low) could yield a re-test of 82.01 (March 7 low) and 81.49 (March 5 low).
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