AUD/JPY PRICE ANALYSIS: STAYS INSIDE KEY DMA ENVELOPE BELOW 82.50 AFTER JAPAN GDP, RBA MINUTES

• AUD/JPY refreshes intraday bottom while consolidating the previous day bounce off one-week low.
• Preliminary Japan Q4 GDP missed upbeat forecasts but stayed positive, RBA Minutes repeated readiness to be patient on policy moves.
• 200-DMA acts as immediate hurdle ahead of previous support line from late January.
• 50-DMA, 50% Fibonacci retracement restrict nearby downside amid bullish MACD signals.

AUD/JPY seesaws between the 200-DMA and 50-DMA, taking offers to refresh intraday low around 82.20 as markets witness the duet of Japan Q4 GDP and RBA Minutes during Tuesday’s Asian session.

That said, Japan’s Preliminary Gross Domestic Product (GDP) for Q4 rose 1.3% QoQ versus 1.4% expected and -0.9% prior. Further, GDP Annualized also reversed the previous readouts of -3.6% with +5.4% figures but stayed below 5.8% market consensus. Further, the preliminary readings of GDP Deflator dropped to -1.3% YoY, below -1.2% expected and prior.

Read: USD/JPY hovers around mid-115.00s amid sluggish yields, mixed Japan Q4 GDP

On the other hand, the latest Minutes of the Reserve Bank of Australia (RBA) monetary policy meeting stated, “Members observed that the achievement of the goals was within sight for the first time in several years.” However, the comments line, “Board is prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve,” challenged AUD/USD buyers.

Read: RBA minutes: Members observed that inflation had picked up more quickly than the bank had expected

Technically, the AUD/JPY pair keeps the last week’s downside break of an upward sloping trend line from January 28, which in turn favors sellers. However, the 50-DMA level of 82.20 restricts the quote’s immediate decline.

Also challenging AUD/JPY sellers is the 50% Fibonacci retracement (Fibo.) of December-January upside, near 81.50.

Should the quote drop below 81.50, the 61.8% Fibo. near 80.90 may test the bears before directing them to January’s low near 80.35 and the 80.00 threshold.

Meanwhile, the 200-DMA level of 82.40 guards recovery moves of the pair ahead of the support-turned-resistance near 82.65.

AUD/JPY: DAILY CHART