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AUD/JPY has been quite corrective and volatile recently after being dominated by the bears for a long period of time, whereas certain bullish momentum can be currently observed. AUD has been performing quite well with the recent economic reports which helped the currency to shift the market sentiment towards it apart from JPY.
Recently, AUD MI Leading Index report has been published with a slight decrease to 0.0% from the previous value of 0.1% and Construction Work Done has performed better than expected resulting to 1.6% though decreasing from 2.4% which was expected to be at 0.7% and CB Leading Index has also increased to 0.2% from the previous value of 0.0%. Moreover, recently, RBA has showed an increase in Government Banking Products and Services and a growth in GDP along with Employment which did help the market sentiment to shift their bias.
On the JPY side, today, JPY National Core CPI report has been published unchanged at 0.8% which was expected to increase to 0.9% and SPPI has been also published unchanged at 1.1% which was expected to increase to 1.2%. The worse results did weaken the JPY gains in the process.
As of the current scenario, AUD has been performing quite well with the fundamentals, whereas JPY has been found struggling in the process. Though AUD is gaining quite impulsively, but it is expected to be short-lived as JPY has strong long-term potentials to gain momentum again in the future. For the coming days, certain gain on the AUD may be observed until JPY comes up with something positive with the high impact reports.
Now let us look at the technical view. The price has been quite corrective at the edge of the 80.50 area, from where the price has pushed impulsively higher recently leading to a strong bullish pressure. The MACD has also signaled a convergence in the process, indicating further bullish momentum with a target towards 82.00 and further higher if a daily close is observed above 82.00. As the price remains above the 80.50 area, the bullish bias is expected to continue.
SUPPORT: 80.50
RESISTANCE: 82.00
BIAS: BULLISH
MOMENTUM: CORRECTIVE
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