AUD/JPY has been very bullish after the break above the resistance level of 87.50. After some downbeat economic reports and the RBA statement, AUD is currently getting weaker against JPY. Today Australia's PPI report was published with an unchanged value at 0.5% which was expected to increase to 0.6% which did not quite help the currency to gain some momentum against JPY. On the other hand, Japan posted the Household Spending report with a positive figure at 2.3% from the previous negative figure at -0.1% which was expected to be at 0.6%. Besides, the National Core CPI was unchanged at 0.4% as expected while the Tokyo Core CPI showed some growth to 0.2% from the previous value of 0.0%. The index was expected to be at 0.1%. Furthermore, the Unemployment Rate decreased to 2.8% from previous value of 3.1% which was expected to be at 3.0%. The Retail Sales report was published with an unchanged value of 2.1% which was expected to rise to 2.3%. Along with all these economic reports, the BOJ Summary of Opinions event was held where the outcome was quite hawkish for JPY which is expected to help JPY to gain some momentum in the coming days. To sum up, as of the recent economic reports, AUD is currently expected to show some more weakness in the coming days before bouncing off again with an impulsive bullish momentum against JPY.
Now let us look at the technical view. The price is currently expected to show some bearish movement towards 87.50 support level before bouncing off again with a bullish move towards 90.50 resistance level. The price is currently residing in a corrective structure and it is quite volatile as well which signals some retracement before launching upward again. As the price remains above 87.50 with a daily close, the bullish bias is expected to continue further.
