- AUD/JPY hs defended the 200-hour MA support, despite dovish comments by RBA’s Lowe.
- Bullish hammer reversal seen on the daily chart indicates the path of least resistance is to the higher side.
AUD/JPY is currently trading at 72.06, representing marginal gains on the day, having hit a high and low of 72.23 and 71.67 earlier today.
The AUD picked up a bid at lows near 71.70 as the Reserve Bank of Australia’s Governor Lowe while testifying before the House of Representatives’ Standing Committee on Economics, said the inflation is likely to pick up.
Lowe, however, added that the date at which inflation is expected to be back at 2% has been pushed out again. Further, Lowe said that the central bank is willing to do unconventional policy, if indeed. So far, markets seem to have ignored that remark.
Notably, with the recovery, with the recovery from 71.67 to 72.00, the pair has defended the 200-hour moving average support, currently at 71.78
Looking forward, the AUD/JPY pair could rise further to 73.00 as the daily chart is reporting a bullish reversal candlestick pattern.
The pair closed above 72.06 yesterday, validating the hammer candle created on Wednesday. A hammer candle is widely considered an early warning of a bearish-to-bullish trend change. The reversal, however, is confirmed if the follow-through is positive on the following day.
Daily chart
Trend: Bullish
Pivot points
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