AUD/JPY snaps three-day losing streak in Asia

Talks of BOJ considering a deeper negative rate cut strengthened the offered tone around JPY, pushing the AUD/JPY cross higher to 76.90 following three-day losing streak.

Yen down despite risk-off in Asia

The Japanese Yen is being offered in Asia even though Asian equities followed US stocks lower. Moreover, speculation is on the rise the Bank of Japan (BOJ) would cut rates further into the negative territory.

As per Nikkei report, there is a consensus among policymakers that the benefits of the negative rates now outweigh the costs. Furthermore, Bloomberg survey also showed a slim majority in favor of BOJ easing next week.

AUD/JPY Technical Levels

The cross could test immediate hurdle of 5-DMA at 77.22, which if breached would open up upside towards 77.84 (50-DMA) and 78.30 (100-DMA). On the lower side, breach of support at 76.92 (daily low) would expose 76.11 (previous day’s low) and 75.59 (June 16 low).