The Australian dollar has broken higher against the safe haven Japanese yen. The AUD/JPY Forex pair is now trading above 81.75 yen and above a falling trend line in play since the beginning of November.
Overnight, the U.S. Federal Reserve kept monetary policy and interest rates as is. They did, as was widely expected announce that they would double the pace of scaling back monthly asset purchases from $15 billion to $30 billion per month.
Their dot-plot is calling for three rate hikes in 2022. Federal Reserve Chair Jerome Powell mentioned that “the Omicron variant poses risks to the outlook.” He also said that there would be no rate hikes “tapering is completed.”
Today, the Bank of England and European Central Bank will be announcing their monetary policy and interest rate decisions. The Bank of England is widely expected to hike their key overnight lending rate.
Daily Australian Dollar Technical Report (AUD/JPY)
Looking at the above daily MT 4 price chart, the Australian dollar is still trading below the one hundred (100) day simple moving average. The AUD/JPY currency exchange rate is now trading two falling trend lines from November. The MACD histogram also looks firmer.
On the upside, the Australian dollar has immediate technical resistance at the 19 November swing low which lines up at 82.15 yen. The two hundred (200) day simple moving average lines up at 82.75 yen. Also on the upside, the 61.8 percent Fibonacci level comes into play near 83.40 yen.
A move lower for the AUD/JPY currency exchange rate notes the 100 day simple moving average lining up around 81.80 yen. The above mentioned descending trend lines line up at 81.15 and 80.80, respectively. The 23.6 percent Fibonacci level lines up near 80.55 yen.
A daily close below the 23.6 percent Fibonacci level opens the door for 80.55 before bring 80 yen into play. The monthly low price point lines up at 78.80 yen.