AUDJPY Chart Technical Outlook to trade north on risk appetite clues from the US PPI data today, AUD/JPY corrected lower after peaking in June, but the momentum of the downside correction is fading at a previously broken resistance-turned-support, which overlaps the 38.2% Fibo retracement level.
The daily RSI shows a bullish divergence and technical indicators support the bullish direction.
The RBA Governor, Philip Lowe, said today, “It is possible that some further tightening of monetary policy will be required”.
The pair correlate positively with stocks. It needs a risk-on sentiment for the bullish bias to prevail.
Today’s events are the US PPI data and Consumer Sentiment. Soft readings would boost the risk appetite.
A break of 94.94 opens the door to 95.65. Supports are located at 93.90 and 93.15.