AUD/JPY Forecast & Technical Analysis
Japan – Policy Rate
On Tuesday, at GMT 3:01 a.m., the Bank of Japan (BOJ) released the policy rate. It is the interest rate that major Japanese banks and financial institutions pay to borrow funds held at the RBA.
Short-term interest rates are the primary factor in the valuation of the Japanese Yen against other major currencies. So, Go Markets traders pay close attention to any changes in the official policy rate.
The BOJ left the cash rate at -0.10% in their last meeting. The forecast for this month was set at -0.10% and the BOJ kept it unchanged at -0.10%.
Australia – Unemployment Rate
On Thursday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate. It measures the percentage of total work force which remained unemployed over the past month.
Binary options investors consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy. It is because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. This is a lagging indicator. But, analyzing this data can help Forex traders predict future interest rates. Also, it can help forecast inflation situation in the country.
Last month, the unemployment rate in Australia came out at 5.2%. This month, analysts are expecting it to remain unchanged at 5.2%.
AUD/JPY Forecast
On January 3, 2020, the AUD/JPY broke below the uptrend line once again. Over the last few weeks, it traded between the support near 73.90 and 76.00. This week, the AUD/JPY turned bearish and broke below the support near 75.35. Currently, it is trading below this support level.
The Bank of Japan left the Policy Rate at -0.10%, indicating slower growth projects in the coming months. On the other hand, the Australian unemployment rate also remained unchanged at 5.2%. Hence, the market will likely focus on technical aspects this week. As the AUD/JPY broke below the support near 75.35, we believe it would attract additional bearish momentum in the near future.
Hence, Australian binary options traders should look out for trading opportunities below this major support level around 75.35.
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