The AUDJPY pair was attempting a breakout in favour of the Japanese Yen despite better than expected Aussie jobs numbers. The market was expecting a print of -50k jobs in the Aussie economy but the actual number was a gain of 111k. This also saw the country’s unemployment rate tumble to 6.8% from the 7.7% expected. This is good news for the Aussie with the jobs data being a key driver of policy for the RBA.
Another release this morning was Bank of Japan interest rates and the country saw rates held at 0.1% as expected. In its policy statement, the BoJ said the economy has started to improve but remained in “a severe situation” due to the impact of the coronavirus. The lack of new stimulus from Japan matched the FOMC rate decision in the U.S. and losses in stocks are driving safe haven buying in currencies such as the Yen.
Japan’s new Prime Minister, Yoshihide Suga, 71, was sworn in by Emperor Naruhito at the Imperial Palace this week after parliament elected him as the country’s new leader. There was speculation that he may call a snap election before year-end to gain public support but there is no news as yet.
Suga was Shinzo Abe’s chief Cabinet secretary and head spokesman, so the new premier will carry on his predecessor’s policies, including efforts to revitalize the economy, with Suga saying:
“Reviving the economy remains the top priority of the administration,”
AUDJPY Technical Outlook
The AUDJPY was seeking to break out of the recent triangle uptrend pattern and is testing first support at 76.30. 75.50 and 75.00 are the next targets if bearishness holds in the pair. The Investing Cube team is available to assist all levels of traders with a Forex Trading Course or one-to-one coaching.