Aussie Yen: Bullish Outlook as BOJ Maintains Ultra-Loose PolicyHi Realistic Traders. Here's my price action analysis on FX:AUDJPY !
The AUD/JPY pair has consistently established higher highs and higher lows, successfully surpassing the EMA200 Line. This upward shift above the EMA200 line unequivocally signals a bullish trend. Subsequently, it formed a symmetrical triangle pattern and decisively breached the upper trendline of this configuration. Such a breakout typically serves as confirmation of a potential upward movement toward the designated target.
It is essential to note that the analysis will no longer hold validity once the target/support area is reached.
Fundamental Driver
On Dec 19, The Bank of Japan (BoJ) decided to maintain its overnight interest rates at minus 0.1% and has made no changes to its yield curve controls. Governor Kazuo Ueda, in a press conference after the BoJ's last meeting of 2023, acknowledged an improved outlook for achieving the inflation target but emphasized that the central bank is not currently prepared to outline an exit strategy from its ultra-loose monetary policy. The governor cited a lack of urgency to adjust policy before the US Federal Reserve potentially considers cutting rates in the coming year. The decision has led to a decrease in the value of the yen, supporting the potential bull run of Aussie Yen.
Disclaimer:
"Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on Aussie Yen."
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