AUD/JPY tests 100-DMA ahead of RBA rate decision

Aussie is on the front foot in the Asian session despite losses in the domestic stock markets, and that has pushed AUD/JPY cross into the technical resistance of 78.80 (100-DMA).

Awaits RBA rate decision

Markets await RBA rate decision, which is the last under RBA governor Glenn Stevens. The bank is expected to keep the interest rate unchanged. Nevertheless, investors will be paying close attention to the bank’s take on the next move in interest rates, exchange rate, inflation and labour market outlook.

Meanwhile, the Japanese Yen is being offered in Asia, which helps AUD/JPY pair stay upbeat ahead of the RBA release as well.

AUD/JPY Technical Levels

The pair was last seen hovering around its 100-DMA level of 78.80. Acceptance above the same would open upside towards 79.42 (76.4% of Brexit day high/low). A violation there could yield 80.00 levels. On the lower side, support is seen at 70.31 (5-DMA) would shift risk in favor of a drop to 77.75 (50-DMA) – 77.00 (50% of Brexit day high/low).