1. USD/JPY Analysis:

News Summary:

Japan’s Liberal Democratic Party (LDP) and the Japan Innovation Party have reached a consensus to form a coalition government. Together, the two parties now hold 231 seats in the House of Representatives, just two seats short of a majority. Although the new coalition has enough votes to elect Sanae Takaichi as Japan’s next Prime Minister, it will face constraints in implementing large-scale fiscal programs. This situation is negative for the yen, as markets expect Takaichi to introduce a massive economic stimulus package — a move that would limit the Bank of Japan’s pace toward policy normalization. 

Trend Analysis:

On the H4 chart, we can see USD/JPY has rebounded within a consolidation phase, returning near the 48 hours moving average. In addition, both the MACD double line and histogram bars are expanding below the zero axis. The buy limit could be used, stop loss is mandatory.

Today's Key Price Levels:

Key Support Levels: [150.00]

Key Resistance Levels: [152.70]
Pivot Points [150.80]

2. AUD/USD Analysis:

News Summary:

Recent cautious remarks from the Assistant Governor of the Reserve Bank of Australia have provided support for the Australian dollar. She noted that recent data has been slightly stronger than expected, which could result in third-quarter inflation coming in above forecasts. Given the continued high level of global uncertainty, the committee will adjust policy as appropriate in response to new information. Third-quarter consumer momentum is expected to soften slightly. Economic risks remain, with consumption staying subdued amid weak employment and wage growth. 

Trend Analysis:

We can see AUD/USD has faced resistance and pulled back, hovering near the 48 hours moving average on H4 chart. On the other hand, the MACD double line and energy bars are contracting around the zero axis. The sell limit could be placed, stop loss is necessary.

Today's Key Price Levels:

Key Support Levels: [0.6570]

Key Resistance Levels: [0.6430]

Pivot Points [0.6540]