FxWirePro: AUD/JPY spikes past 55-EMA, Aussie buoyed after RBA Governor Lowe’s comments

AUD/JPY chart - Trading View 

AUD/JPY was trading 0.62% higher on the day at 83.99 at around 07:45 GMT, slightly lower from session highs at 84.19.

The Australian dollar remained resilient despite a dovish RBA which left benchmark interest rate unchanged at 0.10% while also keeping the three-year bond yield target steady.

RBA Governor Phillip Lowe's comments in the during the post-meeting press conference put a bid on the Australian dollar.

Lowe said that the condition for a lift in the cash rate relates to inflation, not wages. Lowe said that he “wants to see inflation above 2% for a number of quarters."

Focus on wages does not mean we have a target for wages growth or that wages growth necessarily has to have cleared a specific benchmark before we adjust interest rates, Lowe added further.

AUD/JPY has been grinding sideways between 55 and 110 EMAs. Breakout will provide a clear directional bias.

The pair has been capped at 200-month MA from the past 5 months. 200-month MA is major hurdle at 84.76, decisive break above required for upside continuation.