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AUD/JPY beginning to freeze in place just above 82.00

7/31/2018, 10:29:55 AMMarket Analysis
AUD/JPY beginning to freeze in place just above 82.00

The AUD/JPY is seeing tight action with limited directional movement ahead of a key showing for the Bank of Japan (BoJ), and the Aussie-Yen pairing is trading stiffly near 82.20.

The AUD/JPY bounced between swing points from 82.00 to 82.80 last week, and this week has seen a steep contraction in the pair's movement as traders await the BoJ's latest monetary policy statement, due today at 02:00 GMT. 

Aussie traders are also awaiting Building Permits figures due at 01:30 GMT, which are expected to come in flat at 0.0% after the previous month's reading came in at -3.2%. HIA New Home Sales data already disappointed AUD traders, clocking in at 2.2% versus the expected 4.5%, and although the indicator has improved from the previous period's -4.4% contraction, the improvement came in much softer than expected.

AUD/JPY Levels to watch

The Aussie bottomed out against the Yen near 81.80 late last week after slipping from a weekly high just shy of 82.90, and this week has seen a very gradual lift from the opening quotes near 82.00. A break below last week's bottom of 81.80 will see the pair exposed to fresh declines into early July's lows near the 81.00 technical level, while a bullish recovery still has plenty of ground left to recover if the AUD/JPY is going to reclaim July's highs near 83.90.