AUD/JPY Hesitates Near 97.00 as Investors Weigh Factors
The AUD/JPY pair is currently hovering around 97.00, struggling to extend its winning streak. While the pair's recent performance has been bullish, a confluence of factors is contributing to its current indecisiveness.
Market Drivers:
- Improved Risk Appetite: Positive US jobless claims data and better-than-expected Chinese CPI figures have boosted risk appetite, tempering the Japanese Yen's safe-haven appeal.
- BoJ's Cautious Stance: Comments from BoJ Deputy Governor Uchida suggesting a reluctance to raise rates amidst market instability have further limited the Yen's upside potential.
- Hawkish RBA Outlook: The Reserve Bank of Australia (RBA) Governor's hawkish comments on interest rates have strengthened the Australian Dollar.
Upcoming Data:
The next key driver for the AUD/JPY pair will be the release of Q2 Wage Price Index data on Tuesday. This data is crucial as it could influence the RBA's future monetary policy decisions.
Technical Analysis:
The AUD/JPY pair is currently trading within an Ascending Triangle chart pattern on an hourly timeframe. The 50-hour Exponential Moving Average (EMA) near 96.40 is providing support.
The 14-period Relative Strength Index (RSI) suggests a sideways trend. However, a decisive break above the triangle pattern could lead to further gains towards 98.00 and the August 1 high of 98.74.
Conversely, a break below the 95.00 support level could trigger a downside move towards the August 6 low at 93.42 and the August 5 average price of 92.46.