AUD/JPY retreats from daily highs after RBA rate decision

Aussie dollar shed few pips, pushing the AUD/JPY slightly lower from the daily highs after the Reserve Bank of Australia (RBA) left interest rates unchanged and maintained neutral stance as expected.

Rejected at 78.58

The cross clocked a near one-month high of 78.58 ahead of the RBA rate decision largely on the back of the broad based Yen selling. Furthermore, Aussie was trading upbeat as well on expectations the bank would keep rates unchanged.

The AUD is thus trimming gains post RBA decision on ‘sell the fact’ trade. At 78.30, the cross is still remains into the positive territory; courtesy of Yen weakness.

AUD/JPY Technical Levels

A break above 78.67 (Aug 8 high) could yield a move to major resistance at 79.13 (Sep 6 high). A violation there could see the cross test supply around 80.00 levels (zero figure). On the other hand, a move back above 77.88 (100-DMA) would open doors for a drop to 77.34 (50-DMA) and 77.00 (zero figure) levels.