The RBA did some damage on the Aussie’s prices today!
Will AUD buyers find enough friends to restart a previous uptrend?
In case you missed it, the Reserve Bank of Australia (RBA) kept its interest rates unchanged at 4.10% when at least some rate hike fans had expected an increase to 4.35%
AUD/JPY: 15-min
Not surprisingly, Australia’s bond prices dipped and so did AUD against its major counterparts.
But sluggish demand for Japanese government bonds has also weakened the yen today.
And if the RBA Decision Event Guide is any clue, AUD could shake off its post-RBA moves especially if we see risk taking in the next trading sessions.
This could mean a possible upswing for AUD/JPY, which has already dropped to the 95.00 psychological area that represents half of its daily average volatility.
Take note that 95.00 also marks today’s Pivot Point level AND the bottom of an ascending channel pattern on the 15-minute time frame.
A bounce from the 95.00 handle could lead to AUD/JPY demand and the pair possibly returning to its July uptrend.
AUD/JPY could revisit its 95.80 highs or even take a shot at the 96.35 R1 Pivot Point zone near the top of the channel.
Of course, I wouldn’t rule out a return to AUD/JPY’s lower inflection points. The 94.50 and 94.25 zones, for example, could serve as targets if AUD/JPY breaks below its channel support.
Watch the next trading sessions‘ risk sentiment themes to get a better read on AUD/JPY’s next direction!
