AUD/JPY dipped mildly after RBA’s August minutes affirmed that further easing is likely over the coming year. While the Board leaned toward a gradual pace of cuts, it made clear that a faster reduction path is possible if the labor market continues to rebalance.
RBA suggested it would not require material deterioration to quicken the pace; rather, once the job market shifts to a more balanced state, it would be appropriate to cut faster to avoid inflation undershooting target.
Technically, AUD/JPY’s pullback from 97.41, as a correction of the broader rise from 86.03, remains in motion. The rebound from 94.38 has lost momentum after stalling at 95.94, with the falling trend line (now at 96.40) likely to cap further upside attempts.
Break below 95.12 minor would signal the correction entering a fresh leg lower, with 94.38 next support. Breaking that level would extend the correction toward 138.2% projection of 97.41 to 94.88 from 96.81 at 93.31.
Though, strong support should emerge from 38.2% retracement of 86.03 to 97.41 at 93.06 to complete the correction, and bring resumption of rise form 86.03.
