Fundamental Analysis of AUD/JPY for May 4, 2018

AUD/JPY has been quite corrective and volatile recently at the edge of breaking below 82.00 price area recently. Recently, AUD has been quite strong amid economic reports but that did not help the currency to gain over JPY so far. Today, RBA Monetary Policy Statement report was published which turned out to be quite neutral for the currency, leading to more losses along the way against JPY. On the other hand, JPY gained momentum despite the Greenery holiday today. Though Japan did not relase upbeat reports lately, JPY managed to extend momentum. As for the current scenario, JPY is expected to gain further momentum over AUD in the coming days until Australia comes up with better economic reports or events to support AUD impulsive gains in the future.

Now let us look at the technical view. The price is currently residing at the edge of 82.00 which is expected to push much lower towards 80.50 support area in the coming days. The price is being held by the dynamic level of 20 EMA as confluence which is expected to lead to further bearish momentum in the pair in the context of the price action. As the price remains below 83.00 area, the bearish bias is expected to continue further.

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