AUD/JPY has been in a corrective structure since the beginning of the week. The volatility in this pair was high after the gap. Today Japan posted mixed economic reports. Thus, the household spending was published negative at -1.3% which was expected to be at -0.6%; the unemployment rate was unchanged at 2.8% which was expected to rise to 2.9%; the preliminary industrial production data was negative at -2.1% which was expected to be at -0.6%; the retail sales report was positive at 2.1% which was expected to be at 1.6% and the housing starts was published positive at 0.2% which was expected to be at -2.5%. JPY showed mixed trading after the economic reports today, which also made the market sentiment quite confused. On the other hand, Australia release the PPI report which was unchanged at 0.5% versus the expected level of 0.3%. The Private Sector Credit was also unchanged at 0.3% which was expected to be at 0.5%. Overall, both currencies had mixed economic reports which did put the market in dilemma. However, the aussie has been stronger against the yen until now.
Now let us look at the technical picture. The price is currently above the 82.91 support level. The price has been in a corrective structure as both buying and selling impulsive market pressure was present in this pair since the start of the week. Currently, it is expected that the price will move further up towards 85.00 area. As long as the price remains above 82.91, the bias is bullish with the target at 85.00. On the other hand, if the price breaks below 82.91 level with a daily close then we will be changing our bias to bearish and will target the next support at 81.50.
