AUD/JPY has fallen back to 86.85 today after it was broken above it yesterday. After the break above, AUD Trade balance negative report, 1.30B which was expected to be 3.82B, affected AUD against JPY today. Though AUD Building permits was positive at 1.8%, which was expected to be -0.1%, it did not support AUD to gain much strength against JPY. Today JPY did not have any high-impact events to hit the market rather than the Bond Auction which was published at 0.08/3.7. Overall, JPY has gain strength against AUD but negative economic outcome of JPY may lead to another bullish pressure in this pair for AUD.
Now let us look at the technical view, AUD has broken above the resistance area of 0.8670-85 and currently retesting the resistance as support. If the market closes above the resistance area with a daily close it is expected that the price will move towards the next resistance at 0.8750. The bullish bias in this pair will only be changed if the price breaks below 0.8620 with a daily close below it. Until then the market is totally bullish at the moment and it is highly expected that the price will surge higher soon.
