AUD/JPY expectant of central banks’ action, slips below 79.00

The AUD/JPY cross failed several attempts to hold above 0.79 handle, and now consolidates in the red ahead of the upcoming BOJ and RBA policy decisions.

AUD/JPY stuck below 200-DMA

The AUD/JPY pair now drops -0.14% to 78.83, having faced rejection near 79.10 levels. The cross in the AUD/JPY remains under pressure in the mid-European session as the yen’s relative strength outweighs the bullish streak in the AUD/USD pair.

The Japanese yen strengthened against most of its major peers this Thursday as the demand for the safe-haven returned to markets amid increased cautiousness ahead of the Japanese economic releases and highly influential BOJ decision due tomorrow.

While the AUD/USD pair benefits from higher copper prices and also from a broadly lower greenback, following a lack of clear direction delivered by July’s FOMC statement on the US interest rates outlook for this year.

Markets now remain focused on the BOJ policy outcome to be announced tomorrow, while the RBA cash rate announcement is scheduled next Tuesday.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 79.34 (10-DMA) and above which it could extend gains to at 79.95/80 (100-DMA/ round number).To the downside immediate support might be located 78.19/13 (50-DMA/ Jul 26 low) below that at 77.82 (daily S2).