AUDJPY has employment figures ahead on Wednesday, and negative sentiment could provide significant downside potential.
AUDJPY – Weekly Chart
The AUDJPY forex currency pair has recently bounced at support around the 87 levels, but a move below could see the pair go as low as 80 in the weeks ahead. That would provide good risk-to-reward potential. The upside target is 93, with a moving average in the way.
Investors anticipated the first interviews with the new Bank of Japan governor this week. Kazuo Ueda is the first new governor in ten years, and there was hope that he would look to make changes to the bank’s policy.
Markets were left wanting as Ueda said he would maintain the monetary policy and target 2% inflation.
Attention will now turn to Australia’s jobs number, with analysts expecting a drop in new jobs added to 20k. That would be a sharp drop from the 64.6k seen last month, and the unemployment rate is also expected to tick higher by one percentage point to 3.6%. Australia’s economic growth is likely to slow with the global economy facing perilous challenges, the International Monetary Fund (IMF) said in its global outlook report.
AUDJPY Forecast
According to the IMF, the country’s GDP was 3.7% higher last year but is expected to only grow 1.6% this year and 1.7% in 2024. The group’s figures are similar to Australia’s Treasury and Reserve Bank, with the RBA predicting 1.5% growth this year and next.
“The situation in the world has become more complex and more challenging even over the last few months,” Treasurer Jim Chalmers said. “And so we won’t be completely immune from that.”
“The Treasury does expect our own economy to slow considerably later this year,” he said. “Because of that combination of a slowing global economy and the impact of higher interest rates here at home as well”.
AUDJPY traders can take advantage of any slowing in the Aussie economy with downside potential below the 87 price level.
