The pair AUD/JPY is finding support in the difference between interest rates in Japan (0.1%) and Australia (2%). The pair is under the pressure from the expectations of an interest rate decrease in Australia in the beginning of August and the Yen safe-haven status.
On Tuesday, the RBA Meeting’s Minutes are due at 4:30 am (GMT +3). On Wednesday, Consumer Price indices, RBA Trimmed Mean CPI and RBA’s Governor Glenn Stevens speech are due at 4:30 am (GMT +3).
The news are going to add to the volatility in pairs with the AUD during these two days.
Support and resistance
The pair AUD/JPY remains near the strong support levels: 89.40 (2015 lows), 90.75 (0% Fibonacci), 91.40 (EMA200 on the daily chart).
On the 4-hour and daily charts, indicators give sell signals. Due to the news releases, aims and stop-loss levels need to be within short distance when opening long positions.
The breakout of the level of 92.00 would allow the pair to grow to 92.75, 93.45, 94.30. The breakdown and consolidation below 90.75 would allow the pair to fall to 89.40, 88.00, 82.00.
Support levels: 91.40, 90.75, 89.40.
Resistance levels: 92.00, 92.75, 93.45.
Place pending sell orders from the levels of 92.75, 93.00, 93.45 with targets at 92.00, 91.40, 90.75, 90.00, 89.40 and stop-loss at 93.75.
Pending buy orders can be placed from the levels of 91.40, 91.00, 90.75 with targets at 92.00, 92.75, 93.45 and stop-loss at 90.50.
When one of the scenarios plays out, the other one should be cancelled.