AUD/JPY peeps above 50-DMA ahead of RBA minutes release

The tensions between North Korea and US continue to subside, forcing investors to move out of long Yen positions this Tuesday morning in Asia. Thus, AUD/JPY cross peeped above the upward sloping 50-DMA level of 86.31 levels. 

The currency currently chipping away at 86.50 - which is the 38.2% Fib R of the rally from the June low to July high. 

Focus on RBA meeting

The RBA minutes of the latest policy meeting are likely to reiterate the cautiously hawkish stance communicated by the Statement of Monetary Policy [SoMP] and Governor Lowe’s parliamentary testimony. 

Thus, the minutes will probably be a non-event for the Aussie pairs. Big moves could be seen if the minutes stress the necessity to have a weak AUD. 

AUD/JPY Technical Levels

A break above 87.00 [zero figure + 10-DMA] would open doors for 87.37 [Aug 3 low] and 87.65 [July 24 low]. On the lower side, breach of support at 86.31 [50-DMA] would open up downside towards 86.00 [zero figure], under which the sell-off could be extended to 85.45 [Aug 10 low].