Bank of Japan is not in a hurry to raise rates
Technical Analysis Summary AUD/JPY: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Sell | |
| MA(200) | Buy | |
| Fractals | Buy | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Chart Analysis
On the daily timeframe, AUDJPY: D1 has broken out to the upside from a descending channel and a triangle pattern, as well as surpassing the 200-day moving average line. Several technical analysis indicators have formed signals for further upward movement. We do not exclude a bullish trend if AUDJPY: D1 rises above the last high and the upper Bollinger Band line at 92.8. This level can be used as an entry point. The initial risk limit can be set below the 200-day moving average line, Parabolic signal, the last lower fractal, and the lower Bollinger Band line at 89.5. After opening a pending order, the stop loss should be moved along with the Bollinger Band and Parabolic signals to the next fractal low. This way, we adjust the potential profit/loss ratio in our favor. More cautious traders can switch to the four-hour chart after entering the trade and set a stop loss, adjusting it in the direction of the movement. If the price surpasses the stop level (89.5) without activating the order (92.8), it is recommended to remove the order: internal changes are taking place in the market that were not accounted for.
Fundamental Analysis of -
Bank of Japan may continue its ultra-soft (ultra-dovish) monetary policy. Will AUDJPY quotes continue to rise?
Bank of Japan (BoJ) Governor Kazuo Ueda stated that the central bank does not set specific timelines for achieving the 2% y/y inflation target. Market participants do not exclude the possibility that the BoJ will not raise the -0.1% interest rate at its next meeting on June 16. This could be negative for the yen. The negative interest rate has been in place since January 2016. It is worth noting that in April, Japanese inflation was slightly above the target level, reaching +3.5% y/y. The inflation figure for May will be released on June 22. Japan's Retail Sales and Industrial Production, released last week, were weak. This week, Japan will see a relatively large number of economic indicators. Specifically, on June 6, Japan's Household Spending will be released, followed by Current Account data on June 8, as well as the final GDP for the first quarter and others. For the Australian dollar, this week's important event will be the Reserve Bank of Australia's meeting (interest rate at +3.85%) on June 6. On June 7, Australian GDP for the first quarter will be released, followed by the trade balance for April on June 8.