22.11.201804:11 Forex Analysis & Reviews: Fundamental Analysis of AUD/JPY for November 22, 2018

AUD/JPY has been quite volatile after impulsive bullish momentum since the price bounced back from 78.50 area with a daily close. Upbeat economic reports from Australia helped AUD to gain momentum while JPY was struggling amid tepid economic reports and BOJ's financial warnings.

Australia revealed a significant increase in the employment change with the same unemployment rate that was quite remarkable for the economy. This lead to impulsive AUD gains over JPY in the recent days. Recently Australia's MI Leading Index report was published with an increase to 0.1% from the previous value of 0.0% which helped the currency to gain certain momentum during the pullbacks. However, AUD strength is not sufficient enough to sustain the momentum further with ease. The economic calendar contains no economic reports or events in Australia until the weekend. Thus, this week is expected to be quite neutral and a bit weak in terms of gains over JPY.

On the JPY side, recently BOJ said about keeping the inflation as its primary policy consideration and as a measure of the effectiveness of the ultra-loose monetary policy. If BOJ finds out any adjustments are needed i.e. to increase the rates in the future, the regulator will dare to raise it without hesitation. BOJ Governor Kuroda also stated that the higher key policy rate rate may cool down growth to some degree, it but will not solve the financial problems faced by small banks. Recently Japan's All Industry Activity report was published with a decrease to -0.9% from the previous value of 0.4% which was expected to be at -0.8% and today Japan's National Core CPI report was published unchanged at 1.0% as expected.

Meanwhile, AUD is quite stronger fundamentally in comparison to JPY. Due to certain inactivity this week, JPY may gain certain momentum in the process, leading to volatility and corrections along the way until AUD comes up with solid economic data to continue the bullish momentum in the pair.

Now let us look at the technical view. The price is currently pushing lower amid impulsive pressure residing at the edge of 82.00 area from where it is expected to push towards 80.50 support area in the coming days. As the price remains below 83.50 area, the bearish pressure may continue further in the current bullish trend.

SUPPORT: 80.50

RESISTANCE: 82.00, 83.50

BIAS: BULLISH

MOMENTUM: VOLATILE