FxWirePro: AUD/JPY breaks major support at 77 level, good to sell on rallies
AUD/JPY has breached major trendline support at 77 levels and hit session lows of 76.51 after RBA stays on hold. RBA Board decided to leave the cash rate unchanged at 1.75 percent, as widely expected and said that inflat…
AUD/JPY has breached major trendline support at 77 levels and hit session lows of 76.51 after RBA stays on hold.
RBA Board decided to leave the cash rate unchanged at 1.75 percent, as widely expected and said that inflation is quite low and would remain that way for some time.
Regarding the exchange rate, the RBA said that a rising A$ could complicate economic rebalancing.
Data released earlier today was also weak, retail sales growth continued the weak trend in May, rising just 0.2% m/m after a downwardly-revised 0.1% rise in April.
Consumer confidence has slipped a little in recent weeks and the uncertain political environment both domestically and abroad is likely to weigh on confidence going forward.
Australia election vote count has begun again, although nothing conclusive has come through so far.
On the 2-hourly charts AUD/JPY has slipped below 20-SMA at 76.98, Stochs and RSI are biased lower.
Recommendation: Good to sell rallies around 76.75/80, SL: 77.30, TP: 76.40/ 76
