AUD/JPY Sees 0.50% Gain on Diverging RBA and BOJ Policies

In the last session of the week, the AUD/JPY pair rose to 97.409, marking a 0.50% increase. The primary driver behind this upward movement is the contrasting monetary policies of the Reserve Bank of Australia (RBA) and the Bank of Japan (BOJ), favoring the Australian Dollar.

Daily chart indicators signal a strong buying momentum, although four-hour indicators suggest the possibility of overbought conditions. Despite this potential correction, the overall trend remains bullish.

The RBA Governor Bullock recently indicated a balanced perspective on interest rates, leaving room for potential adjustments based on inflation and economic growth. Market expectations lean towards a rate cut by the RBA in August, with further easing anticipated throughout the year.

Conversely, the BOJ maintains a dovish stance, with Governor Ueda suggesting continued accommodative financial conditions. Rate liftoff from the BOJ is forecasted for June, with minimal tightening expected for the remainder of 2024.

Technical analysis reveals a positive trajectory in the Relative Strength Index (RSI) and diminishing red bars in the Moving Average Convergence Divergence (MACD) histogram, indicating buyer control. The pair remains above key Simple Moving Averages (SMAs), emphasizing bullish sentiment across larger time frames.

AUD/JPY daily chart

Moving to the four-hour chart, the momentum switches somewhat. Key performance indicators have approached overbought levels, suggesting an imminent correction. A closer look at the RSI confirms this forecast as it ventures into overbought territory. The MACD confirms this pattern as well, with its green bars gradually shrinking. In summary, whilst the bulls seem to be gaining ground currently, an impending correction looms as short-term momentum indicators align to suggest a pullback.



Today last price97.42
Today Daily Change0.48
Today Daily Change %0.50
Today daily open96.94
Daily SMA2097.01
Daily SMA5096.68
Daily SMA10096.4
Daily SMA20095.2
Previous Daily High97.04
Previous Daily Low96.53
Previous Weekly High97.7
Previous Weekly Low95.5
Previous Monthly High97.88
Previous Monthly Low95.84
Daily Fibonacci 38.2%96.84
Daily Fibonacci 61.8%96.72
Daily Pivot Point S196.63
Daily Pivot Point S296.32
Daily Pivot Point S396.12
Daily Pivot Point R197.14
Daily Pivot Point R297.34
Daily Pivot Point R397.65

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