AUD/JPY Holds Steady Near 110.00 Amid Bearish Technicals

1:09 AM ETDeveloping

Business Desk

In Short: The AUD/JPY cross trades flat near 110.10, despite bearish technical indicators persisting, as the Japanese central bank prepares to hike its policy rate in response to inflation pressures.

The AUD/JPY cross trades on a flat note near 110.10 during the early European trading hours on Monday, according to FXStreet. Despite this stability, underlying bearish technical indicators persist, with the price holding well below the 20-period Bollinger middle band and the 100-day moving average, as noted by Fxleaders.

The Relative Strength Index (14) has slipped to around 29, indicating oversold territory and hinting at potential near-term selling momentum. However, recent price action suggests a potential rebound towards the pivot point, which is at 0.72, according to Fxleaders. Since the price is currently below this level, it suggests a bearish outlook.

For today, the predicted closing price for AUD/USD is 0.7180, with a range of 0.7150 to 0.7200, while looking ahead to the week, the forecasted closing price is 0.7205, with a range of 0.7180 to 0.7230, according to Fxleaders.

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That remains lower than the rate of rising prices in general, but the property portal has forecast annual rent rises among privately rented homes will hit 4% or 5% by the end of the year.
With underlying inflation approaching the BoJ’s 2% target, the Japanese central bank is set to hike its policy rate at the September policy meeting to respond to upside risks to prices.
The ATR of 0.0046 suggests low volatility, which may limit significant price movements in the short term.

Sources

Fxleaderslink