AUD/JPY has been quite corrective in nature showing some bullish gains recently towards the 88.00 resistance level. AUD has been quite positive with the economic reports recently which helped the currency to gain some momentum against JPY in last few days. JPY has also been very positive with the economic reports making the gains of AUD quite competitive. Today, Australia's RBA Financial Stability Review was held where the financial stability and future monetary policies were discussed which expressed the hawkish stance and helped the currency to extend gains against JPY. On the other hand, JPY M2 Money Stock report was published today with an increase to 4.1% from the previous value of 4.0% which was expected to be unchanged. To sum up, despite Japan's upbeat economic reports published recently it did not help the currency to gain good momentum against AUD today. This indicates that AUD is in a stronger position than JPY and further bullish pressure is expected in this pair in the future.
Now let us look at the technical chart. The price is currently being held by the dynamic level of 20 EMA and 88.00 level as resistance. If the price breaks above the dynamic level and 88.00 level with a daily close in the coming days, then we will consider buy positions in this pair with a target towards 89.10 resistance area. On the other hand, if the price rejects off the resistance area of 88.00 with a daily close, then we will plan sell positions with a target towards 85.50-70 support area.
