AUD/JPY forecast for March 11, 2021
Looking at the chart on the weekly time frame, we see that the AUD/JPY pair after minor consolidation again continues up above Fibonacci retracement 61.8% level. Reducing global risk is helping the Australian dollar against the Japanese yen due to global coronavirus vaccination, and based on that, we can expect the AUD/JPY pair to continue beyond 85.00. Moving averages show us that we are still on a bullish road where our target maybe the previous high at 89.00, but before that, we need to pay attention to the zone around 87.50. For the bearish scenario, we need a break below 82.00 to get at least some sign on the chart; by then, we are on the bullish side.
On the daily time frame, we can pay attention to the moving averages of MA20, EMA20 which are on the bullish side for now, and push the AUD/JPY pair towards higher levels. The target at 85.00 is also a psychological level for investors and traders, but reducing global risk gives the wind in the Australian dollar’s back. For the bearish scenario, we need a stronger break below moving averages to consider that option.
On the four-hour chart, we see that the AUD/JPY pair came out of consolidation with the support of moving averages continued up towards 85.00, the break above leads us towards 86.00. Additional support on the chart is our lower trend line. A smaller pullback can be expected but only as a retest of the upper consolidation line.
From the news for this currency pair, we can single out the following: Producer prices in Japan increased by 0.4 percent compared to the month in February, the Bank of Japan announced on Thursday. That was shy of the expectations for an increase of 0.5 percent and remained unchanged then the January reading. Annual producer prices sank 0.7 percent – in line with expectations after falling 1.6 percent in the previous month.
Export prices rose 1.4 percent month-on-month and 0.3 percent year-on-year, the bank said, while import prices jumped 4.1 percent month-on-month but lost 3.5 percent year-on-year.
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