- AUD/JPY remans stuck at the 50-day MA hurdle.
- BOJ’s Kuroda reiterated dovish stance earlier today.
AUD/JPY is again struggling to cut through the 50-day moving average (MA) line despite dovish comments by Bank of Japan’s Governor Haruhiko Kuroda.
The currency pair is currently trading at 75.74, having tested the 50-day MA of 75.80 a few minutes ago. The key MA has been capping upside since July 1.
BOJ’s Kuroda was out on the wires earlier today stating that the economy is expected to expand moderately as a trend and gradually push inflation toward the bank’s target of 2%.
More importantly, Kuroda reiterated that the central bank will make necessary adjustments to sustain the momentum to achieve the price objective and keep short- and long-term rates at current very low levels or a extended period, at least through spring 2020.
That BOJ is miles away from achieving its price goal and is unlikely to normalize its policy any time soon is generally accepted by now and priced in.
Hence, JPY crosses have barely moved following Kuroda’s comments. Looking forward, the AUD/JPY pair will likely find acceptance above the 50-day MA if the risk assets remain bid, leading to broad-based JPY weakness. As of writing, the futures on the S&P 500 index, a global benchmark for risk assets, are reporting a 0.13% drop.
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