• AUD/JPY retreats from intraday high after RBA SoMP, stays mildly bid above 50-DMA.
  • RBA SoMP cited policymakers’ cautious optimism despite strong inflation.
  • A convergence of 100-DMA, 200-DMA becomes a tough nut to crack for bulls.

AUD/JPY eases to 82.10, consolidating weekly gains as bulls turn cautious at a fortnight high after the Reserve Bank of Australia’s (RBA) quarterly Statement of Monetary Policy (SoMP). Even so, AUD/JPY remains up 0.20% intraday while bracing for the first weekly gain in five.

RBA SoMP rejects the need for immediate rate hikes even as the inflation figures are strong. “We will not raise interest rates until inflation is consistently in the target range,” said the bank per the statement.

Read: RBA SoMP: RBA is prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve

However, an impending bullish cross by the MACD line and the quote’s sustained trading above 50-DMA level of 81.94 keeps AUD/JPY buyers hopeful.

Even if the AUD/JPY prices drop below 81.94, the 23.6% Fibonacci retracement (Fibo.) of October-December 2021 downside, around 80.55, becomes strong support to watch during the pair’s further weakness.

On the contrary, a successful break of the immediate monthly resistance line, at 82.20 by the press time, will challenge a confluence of the 100-DMA and 200-DMA, also comprising the 50% Fibo. level around 82.50.

Should AUD/JPY bulls manage to cross the 82.50 hurdle, they become capable to challenge January’s high of 84.30. Though, the 61.8% Fibonacci retracement level near 83.40 may offer an intermediate halt during the rise.

AUD/JPY: Daily chart

Trend: Further upside expected

This article was originally published by Fxstreet.com.Read the original article here.

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