AUD/JPY takes on the 86 handle ahead of RBA (mins) and BoJ

By FXStreet FXStreet (Guatemala) – AUD/JPY is holding the bid ahead of Tokyo where we will get both the RBA minutes and the BoJ to grapple with.

AUD/JPY has been rising along the support of the 50 SMA on the hourly chart and in an extension of the minor recovery from the vicinity of the 82.10 level of last week’s lows and has scored territory on the 86 handle.

The RBA minutes may remain in the camp of the recently less dovish rhetoric from Stevens who is in wait and see mode and that could add some support in the currency. However, any mentions of downside risks to the economy in a new form could be taken as the RBA are leaning towards a tactical rate cut before the year is out and weigh on the Aussie leading into the FOMC and Fed’s awaited rate decision on 17th.

AUD/JPY levels

Technically, the cross is in a rising channel from aforementioned lows and the clean break with closes from this hourly 20 SMA at 85.62 onto the 86 handle leaves the cross and outlook on the short-term charts with a bullish bias, underpinned by hourly RSI (14) in neutral at 59 and MACD …read more

Source:: FX Street