The Australian dollar-yen pair has been trading in a range between 96 and 99 yen since early December last year. Last week’s Australian Consumer Price Index (CPI) was slightly higher than expected, but the trimmed mean slowed down, leading to speculation that a rate cut might happen soon.
Tomorrow’s Australian employment report is expected to show a rise in the unemployment rate. Since the Reserve Bank of Australia (RBA) sees wage growth from a tight labor market as a key driver of inflation, a weaker result may increase expectations of a rate cut, potentially breaking the lower end of the range.
It might be time to consider a sell-on-rebound approach.
AUD/JPY Expected Range: 98.50–97.00 yen
Note: The above information does not guarantee profits. Make your trading decisions carefully.