AUD/JPY moved in the upper ¥109 range at the end of last week as the yen weakened. At times on the evening of the 5th, yen-selling momentum intensified.
AUD/JPY traded broadly within a range last Friday, but shifted toward yen weakness in the evening as AUD/USD rose amid a weaker yen. Bank of Japan-related indicators were weaker than market expectations, and AUD/JPY was affected by yen-selling factors during the night. No major Australian economic indicators were released, and no comments from senior Japanese or Australian officials were reported.
Chart analysis using MT5 released today pointed to heavy buy orders in the upper ¥108 range and numerous buy orders around the middle of the ¥109 range. By contrast, sell orders were heavy around ¥112, with selling also concentrated around the middle of the ¥110 range. These levels are being watched as support and resistance.
Over the past 24 hours, the pairs showing strong correlations with AUD/JPY were GBP/JPY, GBP/USD and AUD/USD. There was little strong correlation with EUR/USD, and no inverse correlation with EUR/JPY. Among the 8 major currencies, the Australian dollar was the strongest. The yen was slightly negative as of the morning, while the Australian dollar widened its gains overnight.
This week's key events include the US ISM non-manufacturing index, comments from the Bank of Japan governor, the FOMC minutes and various Japanese and European data releases. AUD/JPY is expected to remain under close observation in real time.