Yesterday, AUD/JPY broke out of a narrow range and moved toward a weaker yen, ending trading weaker against the yen than at the 4 August close. Yen weakness has also been slightly dominant since midnight.
After forming a narrow range on 5 August, AUD/JPY moved moderately toward a weaker yen and ultimately ended trading with the yen weaker. Following the release of the minutes of the Bank of Japan's monetary policy meeting, it was reported that the view was expressed that expected inflation was rising moderately.
Today's technical analysis points to substantial buy orders around ¥109 in the order book, as well as around ¥116. Meanwhile, sell orders are said to be concentrated in the upper ¥114 range and the mid-¥111 range, which are reportedly being watched as resistance and support levels.
Correlation analysis between AUD/JPY and other currency pairs found a strong correlation with EUR/JPY and GBP/JPY over the past 24 hours, as well as correlations with USD/JPY, EUR/USD and AUD/USD. No particular inverse correlation has been reported.
In an analysis of the relative strength of the 8 major currencies, the Canadian dollar was the strongest recently and the New Zealand dollar the weakest. The yen traded generally in positive territory before turning negative late at night. The Australian dollar has remained slightly positive.